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Apple Meeting iPad Demand with 24-Hour Shipping

Posted by admin On August - 31 - 2010

After months of lag between supply and demand, Apple has begun shipping all six versions of its iPad tablet computer within 24 hours of purchase. Apple’s online store now features the 16-gigabyte, 32-gigabyte and 64-gigabyte iPads in both the Wi-Fi-only incarnation and Wi-Fi with 3G without delay, and with free standard shipping. Don’t expect a rush, though. There’s no option for expedited delivery.

The iPad ranges in price from $499 to $829, depending on storage size and features, and the 3G version requires a data plan.

Fueled by a strong media buzz, Apple sold 300,000 iPads at launch on April 3 and has faced supply problems ever since, pushing back the dates for the 3G version and international release. Orders have been filled in seven to 10 business days.

The groundbreaking device with a 9.7-inch screen and no keyboard, essentially a marriage between an iPod and an e-reader, was so rarely seen except in media reports that Saturday Night Live’s Seth Meyers, in his Weekend Update fake newscast, quipped that the device ushered in “a new era of thousands of people buying something just to find out what it does.”

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In a July earnings call with investors, Apple Chief Operating Officer Tim Cook said the company sold one million iPads in 28 days and 3.3 million in the second quarter. But he conceded the company underestimated demand, saying “we’re increasing capacity as quickly as we can.”

Altimeter Group analyst Michael Gartenberg noted that while late summer is not typically a time of strong device sales, there’s every indication that iPad orders are as brisk as ever.

“At this particular point we’re not seeing demand slowdown,” Gartenberg said. “Production has caught up with demand. We are only going to see demand increase as we head into Q4 as people do their holiday shopping.”

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