Apple Inc (NASDAQ:AAPL) improves on its lead times


Apple Inc (NASDAQ:AAPL)’s iPhone 6 currently is selling in 10 countries and will be starting its sales in another 20 by this Friday September 26th. The current statistics suggest that some models have had longer lead times versus last Saturday’s, while some models were shipped in a shorter time span.

The shorter time lead will help Apple Inc (NASDAQ:AAPL) to follow similar record sales it made in the first week of the launch. Apple Inc (NASDAQ:AAPL) is fast catching up with its vigorous demand numbers. The Apple Inc (NASDAQ:AAPL) U.S. market lead time has remained constant at 7 to10 business days while, in the UK sector shipment time is 3 to 4 weeks.

In countries like Hong Kong and Singapore, the iPhone cannot be obtained online and is only selling at walk in stores as Apple Inc (NASDAQ:AAPL) received a record 4 million preorder requests for its current release. Most of these were ordered online thus Apple (NASDAQ:AAPL) stopped the pre order option, which strengthens the need to have shorter lead times to enhance sale.

Verizon’s iPhone 6 models have shipping patterns that vary from same day dispatching to delivery in late October. Previously, the shipping time went up to 3 months, however the lead times seem to have improved somewhat. AT&T’s lead time has also undergone improvement and so far the shipping time is down to 4 to 5 weeks.

The improvement in lead time is good for customers as well as the company as people find it easier to order items, such as gadgets online rather than going into stores and going through all the physical hassle. The stocks run out sooner as well in physical stores and good online customer service depends on the volume of preorder requests and response times to these requests, otherwise frustration always follows.

UK Vodaphone is succeeding in keeping their dispatch time within  the time span on 2-3 weeks. Similar pattern is followed by Vodaphone Australia  however, the German branch starts shipping in early October. With iPhone 6 sales opening in 20 more countries, Apple Inc (NASDAQ:AAPL) is expected to get more online orders hence, there is a chance that shipment timings will be affected further.

The smaller lead time plays in the favour of Apple Inc (NASDAQ:AAPL) in the long run at least when its marketing investment will wear off and demand will have to be sustained. Think of it this way, Apple Inc (NASDAQ:AAPL) would want their product to reach its customer as soon as possible as the sooner he gets it, the more word of mouth will be generated about the credibility of the company and the smartphone itself.

This will result in more customers and a promise of long term sales as we all know that Apple Inc (NASDAQ:AAPL) will take some time to manufacture and launch the next model. It is necessary for Apple Inc (NASDAQ:AAPL) to keep smaller lead times to enhance sales that will encourage customers to place more orders online and this channel should open up where it has been cancelled.