SupplyAndDemand
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iPhone 5s reportedly outselling the iPhone 5c by two to one
In the months leading up to the iPhone 5s and 5c unveiling, there were no shortage of analysts quick to declare that the iPhone had peaked. Everyone who wanted an iPhone, these analysts claimed, most likely already had one. Consequently, the narrative went, Apple's days of impressive iPhone growth were a thing of the past. Of course, reality told a much different story. During launch weekend, Apple sold 9 million new iPhones, setting a launch weekend record in the process. While Apple doesn't break down sales figures on a model by model basis, a new report from Consumer Intelligence Research Partners (CIRP) relays that the iPhone 5s is outselling the 5c by a factor of two to one. All Things D reports: According to CIRP's survey of consumers who purchased Apple's latest iPhones during the last days of September, the 5s accounted for 64 percent of total iPhone sales following its launch that month. Meanwhile, the the 5c accounted for 27 percent, with the legacy iPhone 4S making up the remaining 9 percent. So not only is the 5s outselling the 5c, it's outselling it more than two to one. This is good news for Apple on a number of fronts. First, Apple likely enjoys healthier margins on the 5s model, so the more of those they can sell the better. Second, it's proof positive that as long as Apple continues to deliver innovative new iPhone models, the masses will willingly and gladly fork over their hard earned money for a first-rate smartphone experience. Indeed, we're a few weeks out from the iPhone 5s launch and the device is still in short supply. While some handset manufacturers can't seem to give their devices away, Apple is still struggling to manufacture enough devices to keep up with demand.
Apple asks suppliers to increase gold iPhone 5s production
When rumors that Apple was planning to release a gold-colored iPhone began trickling in a few weeks ago, it was greeted with a lot of skepticism. Understandably, many felt that a gold iPhone would be gaudy, ostentatious and downright obnoxious. In truth, the aesthetic of the gold-colored iPhone 5s is much more subtle, and dare I say, elegant. Consumers have taken notice as well, with reports that the device is already in extremely short supply. Indeed, demand for the gold iPhone 5s is so great that Apple has reportedly reached out to its suppliers to if they can increase production by 33 percent. The Wall Street Journal reports: Apple has asked its suppliers to increase production of the gold-colored iPhone 5S by an additional one-third after seeing strong demand, people familiar with the situation said. It isn't clear whether there are currently supply constraints manufacturing the new iPhone. As it stands now, Apple's online store indicates that the gold iPhone 5s won't be ready to ship until October. In contrast, both the silver and "space gray" iPhone 5s models will be ready for shipment in seven to 10 days.
iPad 2 shipping time hits 24 hours for the first time
For the first time since the iPad 2 began selling on March 11, 2011, the shipping time for the iconic tablet is 24 hours. That's right -- you can order an iPad 2 right now with the assurance that it be shipped from the factory within one day. It will take a few days longer for it to actually arrive at your doorstep, but at least there are no delays in production now. This is a sure sign that Apple's production of the iPad 2 has finally reached an equilibrium with demand. During the Apple Q3 2011 Results Call last month, Apple Chief Operating Officer Tim Cook noted that the company was nearing that critical balance of supply and demand, and it appears that early production issues have been resolved. Shortly after the iPad 2 release, TUAW reported that shipping times had slipped out to 4 - 5 weeks. By the end of April, those times had decreased to the 1 - 2 week level. Since then, improvements in the yield of critical components have helped the situation. If the future iPad 3 proves to be as popular as its predecessors, I'm sure we'll see similar shortages for 4 to 5 months, so be sure to order early and often.
T-Mobile G2x gets a $50 price bump, still no stock in sight
It looks like the G2x saga isn't over quite yet; after first disappearing from store shelves due to quality concerns "high demand," the dual-core Android smartphone is getting a slight price hike from T-Mobile. As of May 27th, the out-of-stock Froyo handset decided it was worth an extra Grant (quite the presumptuous fellow, no?), dialing in with a new price of $249 after rebate. An internal screenshot describes the price hop as a reaction to inventory constraints. The supposed effects of supply and demand aside, this price adjustment feels a little shaky amid reports of botched WiFi handoffs, overheating, light leakage and reboot issues. With any luck, the G2x will return to store shelves sporting a worry-free update to Gingerbread; but if you aren't counting on it, you can still snag one at Amazon to the tune of $99. Oh, and look: plenty in stock, too!
World Bank report finds selling virtual goods in games more profitable than 'real' economy
A report commissioned by the World Bank's infoDev unit has cast fresh light on one of the more fascinating aspects of our brave new interconnected world: the virtual economy. The "third-party gaming services industry" -- where wealthy but impatient players have someone else grind away at online games for them in exchange for monetary reward -- is one of the focal points of the study, chiefly owing to it having generated revenues in the region of $3 billion in 2009 and now serving as the primary source of income for an estimated 100,000 young folks, primarily in countries like China and Vietnam. What's encouraging about these findings is that most of the revenue from such transactions ends up in the country where the virtual value is produced, which contrasts starkly with some of the more traditional international markets, such as that for coffee beans, where the study estimates only $5.5 billion of the $70 billion annual market value ever makes it back to the producing country. The research also takes an intriguing look at the emerging phenomenon of microwork, which consists of having unskilled workers doing the web's version of menial work -- checking images, transcribing bits of text, bumping up Facebook Likes (naughty!), etc. -- and could also lead to more employment opportunities for people in poorer nations. To get better acquainted with the details, check the links below or click past the break.
Apple could agree to component price hike to secure touchscreens
Contending with seemingly insatiable demand for its new iPad 2, Apple is pondering paying higher prices for touch panel components, according to a report from DigiTimes on Wednesday. Manufacturers in Taiwan claim Apple is more open to certain price hikes during negotiations as the California company tries to secure a sufficient supply of components for its popular touchscreen products. Higher component prices, in the short term, will shrink Apple's gross margins on three of its hottest selling products: the iPad, iPhone and iPod touch. But securing adequate availability of touch panels should help the company relieve some of the constraints in its global supply chain. Such a deal would also put pressure on other consumer electronics companies to pay more for the components they need to build competing tablet computers and smartphones. Apple currently faces incredible pressure from consumers and shareholders to address bottlenecks in the supply chain for its successful families of touch panel devices. Lead times for the new iPad 2 ballooned to 4–5 weeks in its first few days on the US market, and the tablet goes on sale to a broader, global market this Friday. Apple reportedly expects to ship 40 million iPads in 2011. The company is also expected to launch its next generation iPhone later this year. The earthquake and tsunami that struck Japan earlier this month further fueled concerns over possible touch panel supply shortages. According to AppleInsider, a recent report suggested Foxconn, Apple's manufacturing partner, has only two or three weeks' worth of touch panels stockpiled. If the situation in Japan doesn't improve, Foxconn could deplete its stock of touch panel components. Despite these concerns, DigiTimes believes Apple is well positioned to weather a shortage of touch panels. Apple has already booked an estimated 60 percent of the world's touch panel output capacity. As the global market leader in touchscreen devices, Apple will continue to control the lion's share of the world's touch panel supply and enjoy lower component pricing than its competition. "Supply for touch panel[s]...will be more smooth for Apple," concluded DigiTimes. [via AppleInsider]
OpenPandora begins 'private' sales, fast-track your open-source gaming handheld for an extra $150
What with all the excitement about Sony's quad-core handheld and Nintendo's autostereoscopic screen, we have to say, we nearly forgot about the open-source Pandora handheld slowly but assuredly shipping from the UK. Well, we've got some bittersweet news to share, and here it goes: you can now purchase a Pandora for $500, and have it ship within a week. What's bitter about that? Because normally you pay $350 and get put on the pre-order waiting list. That extra $150 sounds like quite the surcharge, but it's an option if you simply can't wait for your number to come up, and OpenPandora chief Craig Rothwell tweets that some portion of those monies will help support the project. Still, those extra units have to come from somewhere, and if you've been standing in line for months, we imagine you won't happy to hear that some rich kid can just swoop in and buy your Pandora out from under you without a care in the world.
Intel Arrandale shortages leading to premium prices, potential product delays
Now this might explain Apple's curious choice to not upgrade the 13-inch MacBook Pro to a Core 2010 CPU. Yahoo! News is reporting shortages of the more budget-minded Core i3 and i5 laptop processors launched by Intel this January, which has led to chip buyers outbidding each other to the point of paying 20 percent premiums on contract prices. That's according to US chip distributor Converge, while research firm CLSA Asia-Pacific Markets estimates that product rollouts could be delayed by up to three months as a result. What has Intel got to say for itself? "We don't comment on speculation, what I can say is that we are pleased with the strong product demand for our laptop platforms." Well sure, you get paid more on a per-CPU basis, why wouldn't you be pleased? On a more serious note, during Intel's latest earnings call both Paul Otellini and CFO Stacy Smith expressed their surprise at the vast demand for their 32nm products, with Smith noting that their production of 32nm chips is the fastest ramping process in the company's history. So there's not really any villainy afoot here, just good old demand catching supply napping.
Making/Money: Economic Equilibrium is MIA
When I first started playing MMOs I was in college. I'd bounced from major to major but ultimately settled on Economics (from a starting point of Medieval and Renaissance Studies - how'd that happen?). Like other economists in games like EverQuest and Ultima Online, I was thrilled to find a lively economy and interested to apply classical economic models in the study of it. The most basic of these models is the typical supply and demand curve. Any economic model starts with price and quantity. The higher the price, the more suppliers want to sell but the less consumers want to buy. As the price decreases, more consumers are interested in purchasing, but fewer suppliers are able to produce profitably. In theory, there is a magical level in the middle where supply and demand meet. That is equilibrium (see graph). What I have since found, which is furiously debated by other economists in the field, is that the typical supply and demand curves do not fit well with the economies of most MMORPGs these days. Depending on the game, add-ons used, and availability of additional market data, there may be sort of invisible caps to the price, and thereby the quantities, of goods traded. Furthermore, auction house fees and vendor sales act much in the same way as taxes or subsidies in real world economies.
The Burning Crusade: Preparing for the Expansion
With exactly two weeks to go, I'm left feeling a little blah about what to do in the World of Warcraft. Not quite enough time to get another character to 60 (well, maybe my shammy), not really in the mood for raiding when my gear is soon to be replaced anyway, and the PvP grind is wearing me out a bit. Fortunately for me (and for you!), I came across a posting on TenTonHammer from about a month ago. So while it may be "old news" to you, I think that it's well worth the read, given that we're so close to launch. The article covers the following topics with some good hints and tips:
