Despite Apples’s new launch of iPhone 5 and iPad Mini, their stocks continue to decline steadily. Peter Cohan blog post comments on Apple lacking innovation and supply management, which explains why Apple stock prices have slashed and missed analysts revenue forecasts. With the iPad mini, Apple only has one supplier for its displays, who also happens to be the biggest competitor, Samsung. Supply constraints also comes from the increased cost of innovation. The in-cell technology of iPhone 5 is more expensive to produce .
In response Peter Cohan post, Apple has failed to forecast a demand and getting the product at the right place and time. The supply management can definitely be improved. Apple should forecast demands and ensure that increased cost from innovation would not hinder effective production.However, is this that big of an issue? If anything, their marketing strategy is working. I strongly feel that Apple has done a good job addressing this issue by being transparent. They “address problem and let people know what to expect and when to expect it.”
Sources
American Government: By Apple Inc.
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