Monday, November 29, 1999

Apple iPad frenzy spreads abroad; supply issues loom

News posted by www.newsinfoline.com

Diehard fans mobbed Apple Inc stores in Asia and Europe as the iPad tablet computer went on sale outside the United States for the first time on Friday.The device, a little smaller than a letter-size sheet and with a colour touchscreen, is designed for surfing the Web, watching movies and reading. It has been hailed by the publishing industry as a potential life-saver.Apple has sold a million iPads in the United States since its April 3 debut, exceeding the most bullish pre-launch estimates. Demand was so heavy the company delayed the international launch by a month.RBC Capital Markets estimated iPad's total shipments will reach 8.13 million units worldwide by the end of the year."I wanted to touch it as soon as possible. I felt real excitement when it was finally in my hands," said Takechiyo Yamanaka, 19, who had camped out in front of Tokyo's flagship Apple store from Wednesday evening to be the first in line."It's a bit of a gut decision, an emotional decision, because it's not really rationally justifiable," said Anna Kistner as she emerged from the Apple store in Munich, Germany with two iPads. "It's a lot of money."The iPad is now on sale in Germany, France, Italy, Switzerland, Spain, Britain, Japan and Australia, and will be on sale in Canada later on Friday.Prices for the cheapest version range from $499 in the United States to the equivalent of $617 in Britain.The buzz around the iPad helped propel Apple past Microsoft this week to become the world's most valuable technology stock, marking a remarkable turnaround of a company that nearly went out of business in the 1990s.Graphic on iPad specifications: http://link.reuters.com/ryb86kGlobal shipments forecast and prices: http://r.reuters.com/dyw86kCREATING A NEEDInternational sales are increasingly important to Apple, which now gets almost three-fifths of its revenue outside the United States.It is counting on its pre-existing base of fans who already own an iPod, iPhone or Macintosh computer to add the iPad to their collection, as rivals line up with their own tablet offerings.Pascal Lordon, among the first in line at the flagship Apple store underneath the Louvre in Paris, said he already had all Apple's other products and described himself as a big fan."The iPhone created a new need but the screen is small. The iPad is more comfortable -- it has a real screen," said the 51-year-old, who works in video editing.Dell's Streak tablet computer will go on sale next month in Britain. Sony Corp and Hewlett-Packard also have tablets in the works."I'm not going to buy the iPad now as it's expensive. And I'm a Sony fan," said Kengo Nakajima, a 19-year old college student who waited in line with his friend Yamanaka at the Apple store in Tokyo's Ginza district.In London, the circus-like atmosphere that has become traditional at Apple product launches prevailed."Jake! Jake! Jake!" Apple store staff chanted as Jake Lee, a 17 year-old student who had waited 20 hours entered the store."This is ridiculous, amazing. I can't believe it," said Lee, adding that the first thing he wanted to do when he got home was sleep -- and then play with the iPad.SUPPLY CONSTRAINTSApple has yet to announce a launch date for mainland China, which could prove a much more difficult market to crack. Bootleg versions of the gadget are being snapped up online and in retail malls in the piracy-prone country.However, there is some concern that Apple, which contracts out the production of the device and depends on numerous parts suppliers, may not be able to supply enough of the device.Foxconn, a Chinese contract manufacturer whose customers include Apple, has live-in workers working round the clock at its Shenzhen factory to meet demand. A rash of apparent suicides has been linked to harsh conditions."There's still going to be supply constraints, but I'm expecting them to sell every single thing they can ship," Andy Hargreaves, a U.S.-based analyst at Pacific Crest Securities, said ahead of Friday's launch.Michito Kimura, a senior analyst at market research firm IDC Japan, said the test would come after the current honeymoon period was over."The real game will start after 'core users' have the devices. I imagine a price cut may be necessary before the Christmas holiday season to stimulate demand."(Additional reporting by Alexei Oreskovic and Edwin Chan in San Francisco, Marie Mawad in Paris and Valle Aviles in London)(Writing by Georgina Prodhan; Editing by Hans Peters)
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