“The amazing Apple Watch was once available to own starting April 24, 2015. Now the watch is only shipping to customers who have pre-ordered the device on April 10th,” Mark Reschke writes for T-GAAP. “Yesterday Apple removed their 04.24.2015 date stamp on the Apple Watch’s home page, replacing it with “The Watch is coming.” According to The Telegraph, Apple’s Senior Vice President of Retail and Online sales, Angela Ahrendt, sent out a letter to Apple retail employees explaining the watch will not be available until June.”
As we announced last week, due to high global interest combined with our initial supply, we are only taking orders online right now. I’ll have more updates as we get closer to in-store availability, but we expect this to continue through the month of May. It has not been an easy decision, and I want to share with you the thinking behind it. — Angela Ahrendts, Senior Vice President, Retail and Online Stores
“Using corporate speak, Ahrendts is in CYA (Cover Your “Backside”) mode,” Reschke writes. “She feigns sorrow at the suffering of Apple retail store employee distress and then asks them to trust her further… Nobody likes walking into a store, seeing what they want, only to be told that product is not available for a few months, if not even longer. But this is exactly what Ahrendt’s odd pre-order, then fuzzy April 24 launch date has caused. This is a nightmare scenario for Apple. If this the new Apple launch process, why not order the MacBook from Amazon, MacMall or wait for the Apple Watch to show up at another location? Apple loses margins on each sale not going directly through their retail or online locations, and this launch has encouraged customers to wait, purchase elsewhere, or worse yet, buy something else.”
“Might Ahrendts not be an ideal fit for Apple? She comes from the world of high-end fashion, where she successfully managed Burburry. But haute couture and Apple are two different creatures,” Reschke writes. “If Apple wants to move towards personal, but fewer sales, that’s fine, but this isn’t the world Apple’s created under Steve Jobs or Tim Cook’s leadership. Perhaps Ahrendts wanted to make a name for herself, thus she’s trying a bold new launch approach at Apple, but perhaps she just doesn’t understand the scope and expectations of Apple’s customer base?”
Read more in the full article here.
MacDailyNews Take: First of all, apply Betteridge’s Law of Headlines immediately. We understand the frustration of wanting an Apple product when there is none to be found, but blaming the wrong person isn’t the best way to alleviate the frustration. Ahrendts isn’t going anywhere (especially not with $73.4 million and counting invested in her). If, God forbid, Tim Cook got hit with a bus tomorrow, we’d nominate Ahrendts to take over.
Secondly, Ahrendts is not to blame for product shortages. Technically, if you want to rant, rant about Jeff Williams, Apple’s COO, we guess, and throw in Tim Cook for good measure since he taught Williams, and/or whatever part of the supply chain is failing, but we wouldn’t rant about any of them at the moment. Things can change rapidly in the supply chain.
We believe that the concept of starting pre-orders on a certain date, with delivery a couple of weeks afterwards is sound. It eliminates the problems with scalpers being bussed in to stand in front of Apple Retail Stores, for one major benefit. Obviously, with Apple Watch, there is a problem ramping up production. The product simply isn’t there. You don’t blame the shopkeep, you blame the supply chain. Shit happens, you know?
If any company can rapidly get their ducks in order, it’s Apple. We wouldn’t blame Ahrendts for trying to make the best out of a bad situation.
Related articles:
Ahrendts memo: Apple Watches will not be available to buy in-store throughout May – April 16, 2015
Analyst: Low Apple Watch supply due to haptic motor and OLED display issues – April 15, 2015
Apple Watch deliveries could arrive sooner than expected – April 14, 2015
Apple Watch preorder data estimate: 1.24 million Apple Watches were preordered in the U.S. on Friday alone – April 13, 2015
Apple Watch first weekend preorders destroy Android Wear’s annual sales – April 13, 2015
Average U.S. Apple Watch pre-order was $707 – April 13, 2015
Apple Watch first-day pre-orders estimated near 1 million – April 13, 2015
Apple likely to quickly ramp up Apple Watch production – April 13, 2015
Apple Watch pre-order shipping estimates stretch into summer – April 11, 2015
Apple Watch sold out in minutes; didn’t preorder in time, how’s June sound? – April 10, 2015
Here are the dates you can expect to get your Apple Watch – April 10, 2015
Apple Watch on fire as Apple sells out fast – April 10, 2015
Apple Watch draws strong turnout at Apple Retail Stores – April 10, 2015
Apple Watch already sold out – April 10, 2015
Open thread: Did you get your Apple Watch preorder placed? – April 10, 2015
[eyeroll]
T-GAAP: this isn’t you. Please don’t do it again.
the PLUM trajectory of overall sales with respect to customer expectation is clearly something that favors AAPL mid- to long-term. I am guessing the author couldn’t tell a PLUM trajectory from a PIE chart lol.
WTF?
So, in other words, this guy is saying that Ahrendts is to blame for Apple already selling every Watch they can produce for the next few months? I’m sure that is a problem that every Apple rival would want to avoid!
Exactly. Samsung would LOVE to have these problems.
Might Ahrendts not be an ideal fit for Apple?
She’s an excellent fit for Apple. This is growing pains in a totally new market for Apple. I’m glad she’s there to take the heat and guide Apple forward. Meanwhile, in Apple manufacturing: pressure Pressure PRESSURE!
All of this “Angela Love” is exaggeration at best and fanboy wankery at worst.
What has she done at Apple? Should she not make her mark before receiving endless, unjustified praise? She’s like a rookie athlete, a star in college, and unproven in the pro league and receiving unearned praise.
Show me something!
I’m not going to disagree. But she proved herself at Burberry and I don’t see anyone else at Apple who understands the luxury or fashion market like she does. Again I see this as Apple growing pains inside a new-to-them market. Having a proven expert in that market does nothing but help.
NOW is when she starts to prove herself at Apple and of course we’re all going to watch how it goes.
90% of Apples market doesn’t give a damn about fashion. We just want faster computers. Apple is a computer company.
Computers remain at the core of most of their business. But they did remove ‘Computer’ from the name of their company for a reason. Also, we knew this fashion culture stuff was going to clash with Apple’s computer culture. Hopefully, Apple will get the hang of it all and NOT end up screwing up its computer user base (at least not more than usual 😉 ).
90% of Apples computer market DIDN’T care about fashion.
But 90% of the watch market DOES care about fashion.
Burberry is in many ways, not a flourishing empire in the US. Many of their stores here are pretty much empty. Sales can be up from nothing pretty easily. Also, most computer buyers would not want to be treated anything like the way people are treated at Burberry. If what has leaked about the way she wants to handle the stores is true, it may become an upscale luxury item, at the expense of the rank and file that made it a name. Would you go into an Apple store if it didn’t have the hands on approach it now does? I know I would not buy the watch, even if I wanted one, until I got my hands on it and really ran it through its paces. Nor would I buy a new computer from them if I could only buy it on line. What I think will happen and what will are not necessarily the same thing. I am just saying that clothing to computers is a huge step and for a company already riding a high wave, I am not sure it is a move that is prudent. To expect someone to go from marketing a product that requires no real understanding to one that requires a lot of intricacies in understanding by a broad range of knowledgable and not so knowledgeable people is a very questionable move.
We’ve been saying around here for a few months that Apple has a culture clash on their hands. I know what you’re pointing out! This is change and Apple are going to have to get a handle on it to keep everyone happy.
The Watch Edition is sold out until August. 🖖😀⌚️
exactly. I know for a fact she has done NOTHING. Apple is in full-on corporate cult of personality mode now.
Again, Ahrendts has done nothing. Check out her crappy Ted talk for a look into her insipid beliefs. PEOPLE POWER. :vomit:
A corporation is only as good as the people who make it up. . . She’s right. You don’t know what you are talking about. The previous guy didn’t know what she knows.
I think Angela is the best number two to Cook they could possibly have on board. 😃👍🏿 Anybody recommending she be canned is an enemy of Apple plus INSANE💥😱
It’s just more FUD, nothing new for Apple.
“Shit happens, you know?”
Excellent. Let’s everybody calm down and get a life.
Compare this to the fiasco that was the release of the pile of dog-doo called Vista. Good god, what a pile of crap that was! And the fiasco that was Windows 7. And the (shudder) Zune!!!!! And… And… And…
“If, God forbid, Tim Cook got hit with a bus tomorrow, we’d nominate Ahrendts to take over. ”
What?!? Based on what accomplishments exactly? Her 2 XX chromosomes? That’s insane.
No, based on her accomplishments as CEO of Burberry.
Her accomplishments as CEO of Burberry prove just that . . . her accomplishments at Burberry. That’s poor logic and has little bearing on her aptitude or potential in a vastly different industry – regardless of the dots you try to connect.
In this instance there is less proof, rather than sufficient proof, that she would be successful running Apple. What sense does it make to nominate someone like this lady, over someone who is entrenched in the “Apple Culture”?
If your justification mentions “because it’s Apple” or “because Tim Cook chose her”, that’s beyond ignorant. Everyone makes hiring mistakes (and i’m not suggesting Tim made one here).
Mr. Operations may be just as responsible, for:
A) Not managing operations effectively
B) Signing off on her direction
This is assuming the issue at hand is within Apple’s control…And it’s possible it may not be.
Agree that Burberry means little but I also agree that she is not responsible for supply chain. What about MacBook? That’s an even worse launch debacle than the watch. An Apple Store guy told me today that nobody ever promised they would be in stores. I said you guys are really running out of excuses aren’t you to come up with that one.
You might want to peruse Apple’s current executive leadership team.
There is no one on there with even 6 seconds of CEO experience. Ahrendts has 6 years of CEO experience. Very successful and impressive CEO experience. If Cook got hit by a bus today, God forbid, guess who the board is making CEO (interim, at the very least)?
Ahrendts has more CEO experience than Cook had when Jobs officially handed him the reins.
Whoever contends that you must have prior CEO experience to be a great leader needs to get a clue. Many successful companies are headed by people who don’t have advanced degrees, let alone CEO experience. And assholes like Welch were lauded as the best CEOs in the world while they over-leveraged their companies — only to have it all fall apart several years later as the bubble those rock star CEOs directly created burst in the hands of their successors.
Angela hasn’t done squat to earn the pay that Apple gave her for walking in the door.
I would agree with you…
…but Apple has already gone the “bring a CEO in” with Amelio and Skulley. Didn’t work out too well. Not culture guys.
With Cook, (in spite of the unusual interim stint), they went with inexperienced (per se) and culture. It’s still too early to tell about Cook, but Culture seems to trump executive experience when it comes to helming the USS Apple.
Right on! It seems we have a panel of people ignorant of her past accomplishments💥😱 She’s extremely accomplished.
put her on a red yoga ball and watch mdn really start to drool.
Wasn’t Tim Cook doomed 12 months ago? Or was that Jon Ivy?
Both, and probably some others. Why were we the only ones to know Ballmer was doomed?
I am dumbfounded by the article.
so they want Ahrendts to have some units for immediate sale in stores and in so doing certainly delay online orders (i.e walk ins — like scalpers – jump ahead of people waiting for weeks online )?
Like MDN states ‘supply chain’ (speed of manufacturing) isn’t under Ahrendts purview. She seems to be doing the best she can under tough supply chain situation. She (with apparently Ive’s input) has set up current reasonably clear display and try on spaces. which is better than fighting hordes of scalpers.
As a marketing person the Apple Watch marketing campaign is terrific – a case study in marketing chops (way better than Apple’s Mac marketing campaigns for the last few years). Interviews, fashion shows, write ups in more outlets than just the tech press (like fashion magazines), high profile ‘endorsements’ like today JJ (star wars) Abrams etc. All with an apparently very low budget (For example Apple Watch TV ad spend is 38 million vs 400 million Microsoft spent on Surface NFL tie in) Selling out your stock is NOT marketing failure but too much success.
as an Apple investor i wish Ahrendts and who ever else did the Watch marketing campaign (Shiller, Ive?) should work similar miracle on Macs.
Sure all Apple fans wish there was plenty of stock available and that you can walk in and buy the watch today in numerous outlets but demand is outstripping manufacturing and manufacturing again is not Ahrendts department.
here is my old post again (which I’ve copied a couple of times See item FOUR ):
—–
Analysts:
“Apple will never produce another hit platform product. Companies only make one of two of these in their existence”
then
“OK Apple made the Apple Watch but it will not sell”
then
“Apple Watch sold out because they had small numbers Available”
then
“This ‘supply constraint’ problems shows Apple’s supply chain is deteriorating or they had ‘no faith’ in the product and ordered little”
then
“Apple Watch sold gazillions but that is BAD because next year without a new product launch sales will pale in comparison”
then
“Although Apple Watch has been selling millions over the last few years we are sure THIS year the market will be saturated”
then
“OK market not saturated yet but THIS year the new (version 17) Nexus-Galaxy – Andromeda – Edge Backside Bazooka will destroy the watch…l ”
then
“OK Apple is taking 90% of the profits and the Backside Bazooka has stopped production BUT WE KNOW in the future : “Apple will never produce ANOTHER hit platform product. Companies only make one of two of these in their existence”
in short
“Never buy Apple Stock , we’ve said it since 1976… “
(Dilbert “You mean success is due to circular logic? ” )
Hi to Pretend Apple Watch is a Failure
🖖😀⌚️
http://www.macobserver.com/tmo/article/how-to-pretend-apple-watch-is-a-failure-no-matter-what
Hi=How. (^£•¥£€€^+#€??!!€$))!? Autocorrect 🖖😀⌚️
yes Kay is a ‘classic’ analyst… .lol.
Oh please. This is why I don’t read idiotic drivel from bloggers. Of course there will be product shortages at first. There always are. Name one major Appld product that hasn’t been in tight supply at first. And all the pedantic whining by some blogger who still lives with his parents won’t change that.
Nor will it change the fact that the retail process for the Apple Watch is excellent. I tried one on yesterday and was extremely impressed how how knowledgeable the Apple Store rep was and by the demo.
Good things are worth the wait. Idiotic blogs are not worth our time.
Wrong logic.. This is not about product shortage!
It is about product not being available at stores at launch date! Period.
Iphones have always been short on supply at kaunch .. But there has been a reasonable inventory alocated to apple stores for launch date.. Hence the exciting lines and the buzz!
As opposed to having zero product on hand for launch date!
This was a planning screwup by , Tim …Phil, and Angela.
It is going take some wind out of the launch.. And disappoint fans.. And give a heyday to media and competition!
And MDN… Angela has not proven anything yet.. … Until such time its better not to jump to conclusions !
Also MDN.. What puts Angela in the crosshairs now is the statment she made prior to this letter she wrote.
She wrote:
“Gone are the day of lines at apple stores…”
Which comes across as a deliberate strategy and a reaction to shortage !
Also to those who choose to downvote posts with concern about this launch :
1-either u find the issue a noneissue.. In which case i hope u are right and im wrong !
Or
2- you dont understand the significance of the lines at apple stores at product launches and their immense impact on Buzz! PR etc!
Sorry …I meant to say
A deliberate strategy and NOT a reaction to product shortage .
I don’t think it’s the end of Apple Store lines. This launch has more to do with security and buying experience – with small valuable items that folk try on, you wouldn’t want a store scrum causing confusion and opportunities to ‘do a runner’! Everything else for sale is either security tagged, fixed or anchored… you can’t do that for personal items, it spoils the buying experience.
Besides, iPhone launches depend on there being a wide supply to carriers where you also get lines so I don’t suppose Apple would eschew the chance of some free PR. The iPhone will always be the odd one out.
I never thought in a million years this would be considered the fault of Ahrendt. She can only go by what the suppliers and Tim Cook tell her to plan for. She’s in charge of the Apple Stores, not the supply chain.
Can’t disagree more. She’s the one telling people that the Apple Watch is the most personal device and that everyone has to try it out — and then she prioritizes web sales over Apple Retail customers. That’s lame. Don’t run a retail store that way.
Ahrendt is not an isolated decision making island. Tim Cook would have to approve of major steps like this especially considering Apple’s image. You’re wrong and don’t appreciate what are the limits of her authority. Web sales are a natural outcome from shortages not her fault and again, everyone at the top knows about it. Of course she’s going to promote it, as Tim Cook has as well – big time.
Yes!….
It is partially her fault..
The managment overall has screwed up !
This guy is TOTALLY wrong!
I went to the North Point Mall in Alpharetta, GA for a demo of the watch early Sunday morning. The girl that gave me the Demo was obviously newly trained and nervous- she knew that getting everything in during the allowed 15 minutes was going to be difficult. She did a great job! There is A LOT to the Apple watch. The bands are different then standard watch bands, the force touch and the “digital crown” are COMPLETELY new- NO watch has that! It was a great demo.
She did put a little (and un-Apple like) sales pressure on me but I guess management is looking for orders. This was in no way “high pressure”. I assume, there is some “metric” that store employees must meet.
Across the isle was a display case with ALL the Apple Watches in it. It was a good way to look and compare all of the available watches. I talked with another employee and he was very informative.
I view the Apple Watch as a discretionary purchase- it would be nice to have but not essential.
I rolled the different options around in my head for a few hours and ordered an Apple Watch on Sunday evening for delivery in “June”. My only regret is that I hope the girl who gave me the demo will get credit for her efforts. I mentioned her by name in the Apple post demo email questionnaire.
This is a watch, but it is very different then any other watch and, for that matter, it is a new kind of product for both me and Apple. I think Apple’s and Ahrendts’ approach to this launch is SPOT ON.
Your post flies way past the 100 of crap articles one has to read. Thanks for sharing your impressions on a real experience that I hope many other customers have with Apple.
I think Angela will be really getting into Apple in a big way over time.
There have been reports of Apple having trouble obtaining sufficient supplies of the haptic engine and OLED displays for the Watch, not to mention I think the pre-orders (demand) was far more than even Apple anticipated, far outstripping the supply. I think this is more about production problems and ramping up volume than anything regarding the sales experience decisions and planning.
MDN is correct, Ahrendts has nothing to do with the production side, and she should not be lashed out at for a lack of supply. Apple will sort out the problems and get production back on track. Remember the gold iPhone 5 shortages, the months-long shortages/waits for the iPhone 6 Plus? And the new MacBook is the same.
The reality is Apple’s products are just too damn popular for there to be a ton in stock when they are released. In order for Apple to have sufficient supply, it would have to begin production six months before any release occurs, which doesn’t allow for the latest software to be installed.
Having people clamoring for your product, and you not being able to build them fast enough, but those people have nowhere else to go to get anything comparable, is definitely a first world problem that any other company would love to have.
“The reality is Apple’s products are just too damn popular for there to be a ton in stock when they are released.”
Exactly. What Apple is going differently here is allowing early adopter customers to get their hands on early production product faster than ever before.
Those who are haters will say this only disappoints others, while the rest of us will say this is a good move that gives early adopters a chance to get the product even faster than they would have if Apple waited until production was full ramped up to do the release.
This is all about trying to attack Apple with any tool at their disposal rational or not and guess what attacking the high profile person is always going to be the best target even when the problems have little to nothing to do with them. If a shop manager is told a product will be available by a said dat and to prepare to best way to sell it then it’s hardly their fault when the delivery lorry doesn’t arrive.
As for the way it is sold you can’t sell the watch with 60 plus variations the same way you can sell a predominantly non fashion product with barely half a dozen variations and a simple colour choice if any at all. How the hell could you possibly deal with queues of prople all trying on endless combinations of watch, it would be a disaster and yes who would get the blame for that I wonder, oh yeah the scapegoat. You can always rely on the average hack, if they cant attack Apple for not selling enough product to in its place criticise the way they sell it.
What garbage.
Apple can sell all the watches it can produce for some time to come.
The online availability means the lineups of scammers and those wishing to buy and then sell on to China for profit can be minimised as all buyers can only get limited purchases based upon separate Credit/debit cards.
The shops offer you the option to try each one of the alternatives and then order immediately on line.
No queue jumping by turning up at an Apple store. Orders supplied direct to an individual mailing address in the sequence in which the orders were placed, – A fair system. Those who ordered first, unseen get the privilidge of receiving them first.
Well done Apple,
And Watch buyers have no excuse for not buying on line, they all have iPhones (with a Apple Store app); and can even order from an Apple Store after trying the watch on. 🖖😀⌚️
Guess I don’t get what he is saying ….
Try to buy a 2015 Subaru Outback or the new F150 2015 aluminum body truck – Tough to find as they can’t make them fast enough ….. And new designs for both this year …. Two great vechiles and worth the wait but if you want something less get that other car / truck …. But if you want the best in class there is a waiting line!
They’ve been short on every release of every product ever. When has there never been products that you could buy in stores on release day? I think this is a screw up somewhere.
OK. The alterative is to design, build and store millions of watches in advance of an announcement – when you know the leaks of parts on websites will give the game away long beforehand.
You announce when you have a 90% worked solution and manufacture as many as you can within 6 months. With a product like the watch – even with millions produced – is not going to meet demand.
Well MDN, Apple isn’t Burberry, two completely different monsters, and she has no experience or business being the ceo of a company like Apple, so ya, nominate Ahrendts to be a ceo of a company she just started at and really knows nothing about. Good call. Your probably gonna be voting for Hillary Clinton too.
Are you seriously suggesting that Hillary Clinton, having been First Lady for 8 years, a US Senator for 6 years, and Secretary of State for 4 years, is under-qualified to be President?
Let me guess…you’re voting for Rand Paul, Ted Cruz or Jeb Bush…all of whom have far less impressive resumes than Clinton…but they have that (R) after their names, which I suspect is the only qualification you care about.
Men keeps saying this process keeps the scalpers away, but that couldn’t be more wrong. THEY JUST WOKE UP AT 12 PDT AND SCALPED ONLINE. This process is designed to meet one goal: keep people away from Apple stores on launch day. Why? Because the watch requires try-on time and that’s impossible with a jillion people lined up. So the for-sure purchases happen anyway, but without store contact, and the maybe purchases happen after try ons where they’ve actually had time to consider it, because there’s not a crush.
As for the April 24 screwup. It’s not a screwup. Clearly they waited extra long this spring to stack up as much inventory as possible. But you can’t have more than you have.
No one will care that April 24 will arrive without gobs of watches available. Everyone will live, the supply chain will slowly catch up, everyone will keep their jobs and apple will keep doing great business.
Men = MDN.
Thanks for nothing autocorrect.
Another day, another “creative” effort to generate some controversial Apple news . . . .
Honestly, I’ve been expecting Ahrendt’s eventual outster ever since I read about the utterly absurd plan to prioritize Genius Bar appointments according to the urgency of the issue—which means that some customers will arrive at the store for their Genius Bar appointments only to be told to “go shopping” because their issue isn’t urgent enough to warrant being seen at the scheduled appointment time. As far as I’m concerned, this is one of the nuttiest ideas that Apple has ever come up with.
I can’t quite figure out why people think Ahrendts is qualified?!?
If she were so qualified, she should have intro’d the Watch in September and March. Where was she? It was the prime opportunity to get her front and center to talk about how they’re going to sell the Watch, and they didn’t. That struck me very strange.
I don’t feel like looking, but I’m willing to bet that the Reschke fellow was one of the many calling for the Watch to flop from the beginning. Zit drippings.
“MacDailyNews Take: … If, God forbid, Tim Cook got hit with a bus tomorrow, we’d nominate Ahrendts to take over.…”
What did Jobs say about putting marketing people in control of Apple? How soon we forget.
Angela Ahrendts is not a “marketing” person. She’s the only person on Apple’s executive leadership team with any CEO experience at all, as MDN noted in their comment.
What in heaven’s name does CEO experience have to do with running Apple’s retail operation???
1. Ahrendts’ note of “It has not been an easy decision, and I want to share with you the thinking behind it.” was exactly what she should have done. It was not corporate speak for a sign of weakness, it was perfect!
2. Apple selling every watch they can make is not a “nightmare scenario for Apple.”
3. Reschke is an idiot!
I hope Reschke is correct. Nothing positive is happening at the Apple stores that I can see. Now with all the buzz about a product that people can’t buy, you have a bunch of retail employees moping around with little to do except help people with their iOS and OSX problems.
Nothing to do but mope around? Are you high? Perhaps they’re continuing to sell Apple’s other products such as iPhones, Macs and iPads…you know, just maybe. Or else they’re sobbing in the stock room like you say.
Every company in the world would love to deal with these issues.