We are all familiar with the long lines outside of Apple each time a new product is released in store, but have you ever wondered why they never seem to have enough product to meet the outstanding demand?

Since Steve Jobs’ passed away, Tim Cook (former supply chain director) has taken Jobs’ place as CEO. Prior to Jobs death Tim Cook was referred to as the “supply chain guru” as he ensured efficiency along the production line while Steve Jobs’ focused on Apple’s innovation. Today, while Cook is prioritizing his role of CEO, the supply chain is suffering without his expertise; supply is not meeting consumer demand, especially with the iPad Mini’s. Why? Because Samsung is no longer supplying Apple with the iPad mini display Apple’s alternative supplier is AUO. AUO is a new supplier; therefore, they are “not able get the volumes that Apple needs, so essentially, there’s just one supplier.” Apple’s stocks have taken a plunge in response to their product shortage and inability to innovate. Although having a higher inventory turnover rate is productive and cost efficient, Apple’s inventory is too low which is costing them because their supply does not meet demand which then results in lost revenue.

http://www.forbes.com/sites/petercohan/2012/10/26/apple-cant-innovate-or-manage-supply-chain/