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http://www.insanely-great.com/news.php?id=846

17" iMac: Apple "Cannot Keep Up With Demand"
By Remy Davison, Insanely Great Mac
August 26th 2002

Stock shortage, waiting lists, may have real impact on Apple''s quarterly bottom line.

You may have to wait weeks to get your hands on an iMac 17. USAToday are reporting 
that Apple can scarcely keep up with demand for the new model, introduced at MacWorld 
New York in July.

The scenario is reminiscent of the original iMac LCD launch in January this year, when 
it took until March before Apple could source enough 15" LCD panels to satisfy demand 
for the new G4 flat-panel.

USAToday reports that even the New York AppleStore has a 1,000-person-long waiting 
list, while the Tyson''s Corner store in Northern Virginia, there''s a 2-3 week 
delivery time. Other Apple Retail Stores are selling the iMac 17 on a day-by-day basis 
as inventory comes in.

The shortage of LCDs early in 2002 was sparked by a world-wide upsurge in demand for 
LCDs, caused by most PC manufacturers jumping onto the LCD bandwagon, so they could 
add the LCD as an option to their otherwise bread-and-butter PC systems.

Apple took a different approach, designing the iMac G4 from the ground up, with a 
swivelling, pivoting LCD screen attached to a semi-hemispherical base.

In the article, Apple is quoted as saying that the iMac is "shipping to plan", 
although the company did not state sales or shipping forecasts.

iMac G4 shipments have been characterized by a distinct consumer preference for the 
high-end DVD-R model, which is also included in the 17" iMac. Recently, Apple dropped 
prices by $100 on each of the lower-end iMacs, while adding a $1,499 DVD-R eMac to its 
line-up.

Analysis: One analyst cited in the USAToday story is right: Apple could screw up this 
quarter due to its inabiiity to forecast demand for new product. While the 15" iMac 
stock shortfall in Q1 wasn''t Apple''s fault, it was indirectly responsible for 
failing to ensure it had adequate LCD supplies on tap to satisfy demand.


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