Why we never get as many iPhones as we ordered
Our article surrounding the iPhone launch garnered over 100 comments, many of them asking the same question about limited availability: why don’t you just order more? I checked with the Category Management and Logistics teams, and am providing answers to your most frequently asked questions here.
A little over a week ago, Martin Jungfer wrote about what happens here in the lead-up to an iPhone launch. What unfolded in the comments afterward was just as interesting as the article itself.
I asked Sebastian Haut, the person in charge of our iPhone range. He watched the keynote on Wednesday and saw the new smartphones there for the first time. Apple didn’t release any preliminary information about these devices.
One question kept coming up: if devices are flying off the shelves anyway, why don’t we just order the maximum quantity of everything?
Ordering more doesn’t mean you’ll get more products
«Just ordering the maximum amount of everything doesn’t work. We always order more than we get anyway,» says Sebastian. Apple distributes available inventory across continents, countries and sales channels according to its own plan. Just because you order 100,000 devices instead of 50,000 doesn’t mean you’ll receive more.
Another suspicion raised in the comments: that we first collect customer orders during the pre-order phase and only then place an order with Apple. «That’s not what happens,» says Sebastian. «From day one, we order large quantities that far exceed what we actually receive in the first few weeks after launch.»
Statistics stop at colours
But if you wait until after the keynote to start planning, you’ll be too late. Given this, Sebastian had already prepared a projection based on historical data, figures from the previous year and Galaxus’s current growth. Then, it was a matter of marrying these projections with reality. At this point, Apple revealed actual prices and specifications on its website for the first time. Sebastian went through them and checked how far off the mark his assumptions were. A reality check before any order was placed.
He started with the total demand. How many devices would we need in total? To figure this out, he drew on experience from Switzerland and Germany. He then broke down this number: first by series, then by storage option and finally by colour.
There’s ample data available regarding storage. You can clearly see from previous launches who buys how much storage. Choosing colours is trickier. «You have to feel it out, too,» says Sebastian. «Will the new highlight colour really catch on?» Last year, it was orange. But you don't find out whether customers will go for these colours until after the launch.
There are several dozen different versions of the iPhone. Between the iPad and the Watch, there can be as many as 160 new products, and he has to estimate the quantity for each one.
These days, everyone’s pitching in
What nobody in the comments suspected: before and after an Apple launch, virtually the entire ten-person smartphone team works on nothing else. Sebastian is usually the only person in charge of iPhones. But during the launch, the work is shared among everyone.
Creating products, entering orders and setting purchase prices so that every product goes live online without a hitch. Much of this is done by hand since no product data exists beforehand. «We sometimes have to work against our automated system,» says Sebastian. «There’s no way you can handle that on your own in such a short time frame.»
Black film instead of clear
Life in the warehouse is actually less dramatic than many imagine. At first glance, the only thing that stands out is the packaging. When iPhones arrive on pallets, they’re often wrapped in black plastic instead of the clear stuff. That way, no one can see what’s underneath from the outside. After that, it’s the same process as with every delivery. «In terms of process, we handle the device just like any other – unpacking it, counting and checking the quantity,» says Carina Mück, responsible for processes at the warehouse in Krefeld. There’s one difference: for iPhones, we also record the IMEI and serial number before shipping them to customers. If the quantity or condition is off, Logistics reports it back to Category Management.
Where the iPhones end up depends on their location. In Wohlen, the system decides. Products above a certain value – and, generally, all smartphones – are routed to the automated storage areas, not to the Picktower, where goods are stored openly on shelves and retrieved by hand.
The German warehouse in Krefeld operates without an automated system and has found an alternative solution. There’s a high-value area – a separate section for expensive merchandise. Only selected employees are granted access. As soon as they’re checked in, the devices are placed on a separate trolley designated for this zone. The system actively prevents mix-ins with regular merchandise. IMEI is scanned during packaging too. This makes each device easy to identify later on – in the event of a warranty claim, for example.
«If we don’t receive clear information from Category Management, everything follows the standard process,» says Philippe Marty, in charge of the warehouse in Wohlen. That’s exactly why Sebastian’s team steps up when the going gets tough. For example, if a shipment arrives on Thursday evening and sales start on Friday. Then the Logistics department has to schedule them as a priority. Otherwise, it’ll still be in the receiving area while the first parcels should already be going out.
What we’re doing differently this year
We aren’t changing the purchasing process. Communication is where we’re getting better.
«We’re at the end of the chain, and often we don’t even have the information we’d like to pass on ourselves,» says Sebastian.
If you’ve pre-ordered, you’ll automatically receive an e-mail as soon as a supplier announces a new delivery date. If they don’t know the exact details, their system might even suggest an appointment three months on. If the merchandise arrives earlier than expected, the date is moved back. In the worst-case scenario, you might end up with three conflicting e-mails about the same order in your inbox.
That’s why we’re providing more context this year. You’ll see an overview of when pre-orders were shipped last year. Of users who placed an order within the first three days, 70 per cent received their iPhone within the first week after launch. It’s first come, first served: the sooner you order, the shorter the wait.
As a Multimedia Producer, preparing multimedia content and knowing about cutting-edge technology is my business. My main focus at digitec is producing videos. I can’t wait to try out new products such as cameras, drones or smartphones as soon as they’re launched. This is where being at the source comes in rather handy. When I’m not working, I’m probably skiing, biking or hiking – the mountains are my place to be.
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