“The big letdown from Apple’s product announcement last Tuesday was news that its most desirable new gadget, the iPhone X, can’t be pre-ordered until late October and won’t start shipping until November. Even then, analysts are predicting supply shortages,” Christopher Mims reports for The Wall Street Journal. ” Dealers in Hong Kong expect to sell the phones at a $300 to $400 premium in the first weeks they’re available.”

“You’d think after years of hard-won experience, tech hardware companies could deliver goods when and where there’s demand—especially at Apple, whose chief executive, Tim Cook, made his name as an operations maestro,” Mims reports. “Are these shortages some kind of Machiavellian marketing play? Calculated risk management? Or is it the case that manufacturing millions of complex electronic gadgets, and distributing them globally, is really hard? It’s likely a bit of all of these.”

“The pre-order mechanism, where customers signal their intent to buy a product before it starts shipping, provides early data that is essential to predicting demand for a gadget and distribution of demand across its various configurations—both notoriously difficult to forecast.,” Mims reports. “Apple may well be facing its biggest demand-forecasting challenge since the original iPhone. While Apple has empirical data on demand for new iPhones, it’s harder to know what proportion of orders will be for the iPhone X versus its somewhat less pricey new siblings, the iPhone 8 and 8 Plus.”

Apple's iPhone X. Say hello to the future.

Apple’s iPhone X. Say hello to the future.

Much more in the full article here.

MacDailyNews Take: More likely, in Hong Kong, the units int he early weeks of iPhone X will sell at double Apple’s asking price or more.

There is no way for Apple’s supply chain to make enough iPhone X units to satisfy demand. The iPhone X will be one of the more difficult Apple products to get initially and that supply/demand imbalance could last for many months.

Good luck on pre-order night!