Apple: iPhone Demand Looks Strong Globally
Years ago, Apple used to have problems managing its inventory. It would launch a hot new product, and offer up far fewer than there was demand for. While Apple has since learned better, it still found itself at the end of March with "stockouts" - or low inventories - of its popular iPhone.
This time, though, it happened for a different reason, one that Apple executives say points to strong demand ahead for the iPhone this year.
On a conference call Wednesday, Apple chief operating officer Timothy Cook explained why Apple stores found themselves in short supply of iPhones last month.
Stockouts were occurring in our own stores at the end of this quarter. We believe that is because people are coming in and buying multiple units and then unlocking and exporting them.In other words, people in countries in Asia and other areas where Apple has yet to rollout the iPhone are buying them up here, tweaking them to work with foreign phone carriers, and sending them abroad.
Cook said that this is happening often enough to encourage Apple as it plans to sell the iPhone in more countries later this year.
We believe the number [of iPhones sent abroad] continues to be significant. This is a proxy for the worldwide demand for the iPhone.