New iPhone 4 reaches 100% stockouts among major retailers, including Apple Stores.

The new and sleek Apple iPhone sells like hotcake

iPhone image from
Bestbuy.com

Six days after Apple introduced the new iPhone 4 in retail stores, the gadget had reached almost 100% stockouts among major retail stores nationwide. By Friday, there were stockouts at 80% of Apple Stores, 90% of O2 and 100% of all Best Buy stores. And by Saturday, there were only around 5% had iPhones in stock.

The newly-improved iPhone from Apple was selling like hotcake. Despite several issues surrounding the launching of iPhone 4 including the pre-order debacle of June 15, Apple announced on Sunday that iPhone 4 sales topped 1.7 million in the first 3 days of the device's availability. Steve Jobs, Apple's CEO said that the current iPhone is the most successful product launch in Apple's history. Steve Jobs was right. It took 28 days for Apple iPad to reach 1 million mark since its product launch few months ago.

I went to my local Best Buy outlet here in Seattle to see whether there was stockout. In fact, there was, and there is. Stock was completely empty except for items that have been pre-ordered and waiting to be pick up. I went online on that same day hoping that I can still order right there and then. But the device online has gone sold out as well. Best Buy store told me that when I place my order now, or anytime this week, it will take between 3 - 4 weeks before my order will finally arrive.

Steve Job's delicious Apple

When the first generation of iPhone was launched January 2007, it took 74 days for Apple to reach the 1 million mark. At that time, the iPhone functions with many features such as a camera phone, including text messaging and visual voicemail, a portable media player, and an Internet client, with e-mail, web browsing, and Wi-Fi connectivity. The user interface is built around the device's multi-touch screen, including a virtual keyboard rather than a physical one.

On the second and third generation of the product, Apple has tremendously updated its core OS, introduced third party software functionalities, and improve hardware-software compatibilities as well.

Secret of Apple's success

So the logical question we need to addres is: What exactly are the secrets of Apple's success with the iPhone Product?





First, Investing on the right technology. Since its inception, Apple had invested over US$150 million of development cost for the product alone. Touch screen technology has been around for many years and its applications were limited to thin client touch screens, ATMs, POS applications, kiosk interactive, and other enterprise applications, but never had been applied to mobile communications devices prior to 2007.

So what Steve Jobs did was indeed brilliant: He, together with key Apple Engineers, and computer scientists, spearhead with the development of mobile touchscreen technology. The project was a collaborative efforts with AT&T Mobility (formerly known as Cingular Wireless at the time of development). It was the best investment on the right technology, at the right time.

Second, If you happened to monitor how technology has evolved for the last 5 years, you will agree with me that one rousing success of Apple today is due to the company's large and rapidly growing iOS operating system installed within iPhone devices and iTunes/App store built into them which other competitors and vendors cannot replicate.

click the image to enlarge

Using the chart above, there are 235K apps available on the iTune App Store which is growing at a rate of 10-20% M/M compared to 61K Android Apps and 8K for Blackberry Apps.

Lastly, Improved User experience also contributes to the long term competitive advantage for Apple. Few of the new improvements with iPhone 4 are:

• The new iPhone 4 features FaceTime®, which makes video calling as easy as one tap
• Apple’s new Retina display, the highest resolution display ever built into a phone, resulting in stunning text, images and video.
• Improved Storage capacity
• Touch UI has competitive advantage over its competitors.

Should you have decided to buy the new Apple iPhone 4G in your area, wait until the "sales craze" subsides or when prices get a bit lower. When demand is high, the supply is low. And when it happens, expect a relatively higher prices.

Related story:

• iPhone 4 availability breaks AT&T website
• Google Nexus One outsells iPhone

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