This post is for everyone but mostly for GadgetDon who is a friend that I’ve known for 9 years and is an expert in such matters and took my tweets earlier the wrong way. I still encourage everyone to read it.
Customers can begin pre-ordering their new iPad today
Apple® today announced it has sold three million of its incredible new iPad®, since its launch on Friday, March 16.
In typical fashion, the bloggers and big-media echo Apple’s statement by saying that Apple sold 3 million iPads in 3 days. This is untrue. From an accounting point of view, yes it is an accurate claim but in the literal sense, it’s not.
March 7th at some point in the afternoon, Apple.com’s Online Store allowed customers to Pre-Order the devices. Their cards weren’t charged until a week later when the iPads left the warehouses around the world. Most cards were charged on Tuesday the 13th and iPads were delivered on Friday the 16th. Most bloggers will claim that Apple sold 3 million iPads in 3 days. Actually, iPads were reserved or pre-ordered on the 7th so that makes for a full 15 days of iPad sales and this is important as I believe the 3 million number would not be reached in only 3 days.
It makes sense that March 7th was the 1st or 2nd largest sales day for iPad followed by Friday the 16th when iPad arrived at Apple’s Retail Stores, Best Buy, Wal*Mart and other retailers. Customers still opt to purchase the device in person and some of the general public didn’t know a new iPad was out until it officially went on sale on the 16th and then jumped online to make orders. It also helps that the 16th was pay-day for some of America.
Regardless of the 16th possibly being the biggest sales day from a viewpoint of literal moving of products, the key here is that for 13 days prior to the 16th, millions of people went to Apple.com and pressed a button indicating their intention to purchase a product.
The argument here is that Apple “sold” 3 million in 3 days because that’s when units ended up in customer’s hands. I’m not fighting this fact. My argument is that half of the orders potentially came prior to the 16th when customers filled out their credit card info and clicked “Order” on Store.Apple.com for a new iPad.
I believe those same customers would have ended up buying an iPad maybe on launch day and maybe afterward but I don’t believe the 3 million number figure would have been achieved had their not been such a long lead time to release date.
3 million people absolutely would not have purchased an iPad starting Friday the 16th and ending Monday the 19th for a few reasons:
- Let’s account for a few hundred thousand that came from people going to Apple.com to buy an iPad realizing a new one is out. Yes, this is a REAL customer case.
- Also, Apple Stores had signs promoting the new iPad before the ship date and online email marketing and Apple.com having new iPad ads that customers saw and withheld their purchase of a new iPad OR sold / saved for the new iPad over the course of 15 days such as not buying a new purse or watch and instead saving for or pre-ordering an iPad
I think the last bullet is multi-leveled but I think you get the point. My point is I believe the number sold would be half of 3 million had Apple not allowed orders until Friday the 16th online OR you can wait in line to get it that day.
Of course, Apple wouldn’t do this. why make people wait to hand over credit card info? There’s no point. That’s fine and, as far as their press release goes, they’re legally obligated to say 3 million were “sold” in 3 days because the device wasn’t on sale until the 16th. However, media should be held to a standard that means they include this details that the iPad was available for pre-order as of March 7th. My one reason for this and I’m sure there are more.
Casual investors see 3 million in 3 days and think this is a gigantic number. It is. I’m not saying it’s not. The importance of journalists and bloggers saying the iPad was available for pre-order 13 days + 3 days and thus the 3 million sold is higher than it would have been if Apple has only listed the iPad for sale for 3 days and not 15. “Sale” is a term I’m not trying to redefine but “Order” is. 3 million were ordered in 15 days and this should be what is printed because it’s just more accurate versus 3 million sold in 3 days.
I’m not ignoring the fact that the iPad ordering online via Apple.com showed “ships in 2-3 weeks” 4 days after the iPad pre-orders were open (around March 11th). This means, those customers that ordered still haven’t received their iPad so, 3 million in 15 days could actually be twice as high if Apple were able to make enough iPads to keep ship times at March 16th for all who entered their credit card info.
So, I’m not an Apple hater by saying 3 million in 15 isn’t amazing. I’m saying that Apple sold 3 million in 3 days but technically it’s 15 days and just swap out “sold” for “customers ordered” and you’ll see my point