Strong demand for iPod mini drives Apple shares up $1.37, 5.4 percent

Apple Computer Inc. (AAPL) added $1.37, or 5.4 percent, to close at $26.87 after saying it would have to postpone the overseas launch of the smaller version of its iPod music player because of unexpectedly strong U.S. demand.

Nasdaq AAPL quote here.


  1. to Joe McConnel :

    Woz came back when Jobs came back. Jobs had Woz leave. Don’t know why, so I am thinking that is not going to happen.

    Source: Apple Confidential 2.0

  2. Actually I think it’s good to publicity for Apple to not have enough iPod mini’s it gives the people the now I want it because it hard to get feeling. remember tickle me elmo! Apple accidentally created he next big I want item with the lack of iPod mini if every store had them in stock I don’t think that it would be so popular as it is now.

  3. DaveH: “Ahem…”

    Reply: Which means bad news and delays for Apple. Apple seems to always have a problem with over-promising and then under-delivering of product.
    Now we know of the iPod delays, next will come to light the big problems with delivering the next G5s.
    Maybe Steve needs to hire someone from Dell to straighten out production and plannning…

  4. PressBoy:

    Are you Thurrott in disguise?

    Oooh yes, let’s have somebody from Dell. Maybe we can have lots of product sitting on shelves so we have to sell them at a massive discount before Wall Street discovers how much unsold stock we’ve got.

    How well is the DJ selling then?? And why is it being discounted like crazy?? Sounds like great planning.


    BTW, I’m taking a note of names and when Apple announces immediate availability of new product in April, there’s going to be some verbal humiliation being meted out.

  5. This is only bad news if all the people who were going to buy a mini are now going to buy a Dell rather than wait….that’s what I’m going to do……..well, perhaps not.

  6. PressBoy, sometimes it is the penalty Apple pay for wanting to use the latest technology on some of their products. I’m sure if the mini used a 3.5inch HD from IBM they could have easily met deadlines, but would anyone want to buy it? The same is happening with the XServes, which are delayed because they are the first machines to market using 90nm processors.

  7. I think the spike in Apple stock is more about Wall Street realizing that MP3 players are going to be the next BIG thing, and that Apple clearly has the most desirable product on the market. For now anyway.

  8. Sorry folks, but this is not bad news. In a perfect world, you’d have exactly enough supply to meet demand. You’d waste no costs on inventory to sit on shelves. That’s not the case here. Instead, Apple came with a product that sold better than their expectations. They chose a hard drive manufacturer that they thought could supply them. But the product is so in demand that they ran out. That’s bad news?!?!

    Hitachi is now ramping up production. The people that want the iPod Mini will still want it. Some may jump to another product, but most will wait the few weeks to get theirs. It’s become chic to have an iPod. Not a music player – an iPod.

  9. MCCFR says: “How well is the DJ selling then??”

    REPLY: Do you know? I don�t and I don�t really care what Dell sells.

    MCCFR says: “BTW, I’m taking a note of names and when Apple announces immediate availability of new product in April, there’s going to be some verbal humiliation being meted out.”

    When in April? April 1…as in APRIL FOOLS!
    And: Your comment of “immediate availability”. Apple has never announced a product that had “immediate availability”. Sooooooo….start verbally humiliating yourself…

  10. Jimbo von Winskinheimer says: “That’s bad news?!?!”

    Yes, its bad news Apple is losing sales, losing money, losing profit…giving the competition a chance to catch up. How can anyone say its good news?

  11. Press Boy:

    Your comments might be valid if you knew for a fact how many Minis Apple did actually sell. For all we know, they probably had a very large quantity above the “100,000 pre orders” number being floated around in the media. For example: they’ve been saying that they (thought they) had enough stock to last them through June. That number could be anywhere between the initial 100,000 pre-order stock and up to two or three times that amount. In other words: we armchair quarterbacks HAVE NO IDEA how much initial inventory they had, thus it is rather stupid to speculate on it at this time.

    BTW it’s been reported that iPod unit sales had INCREASED in the month of February 8%, to give the iPod 33% of the MP3 player WORLDWIDE market, with RCA coming in a distant second (13.5%), Rio an even more distant third (13%) and iRiver in fourth (10%). So much for the current crop of “iPod Killers”…

  12. Okay so, Apple and Hitachi both claim that they (Apple) are using most of the 4 GB drives produced and yet on this list people squawk about Apple needing to get the supply chain right? Give me a break! This is GOOD news. If you’re a competitor, where are your products? Where you going to get 4 GB drives if Hitachi is sold out due to Apple’s demand. The thing most people don’t get with the success of the iPod/iTunes is that Apple makes the whole widget. Top to bottom, fully integrated from distribution via computer to device. Who else is going to be able to do that for a long time. Nobody, very few companies are set up that way still in the computer industry. So, Jobs & Co. went at the market that they could exploit that would most benefit them. Will there be competition, sure, over time, meanwhile their model is pretty much exclusive. And, consider the July timing. They’re probably lining that timing up with the debut of the European ITMS. There’s so much data and information WE don’t know that they DO know so, jumping to conclusions in this arena is like predicting a football game outcome without seeing the players on the field just the score.

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