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Apple iPad 2 supply still can't meet demand

Its beginning to feel like Apple doesnt understand the most basic principle of a capitalist economy: supply and demand. While people have been demandin...

Freddie Pierce
|Jul 20|magazine5 min read

It’s beginning to feel like Apple doesn’t understand the most basic principle of a capitalist economy: supply and demand.

While people have been demanding Apple iPad 2 since its launch in March earlier this year, the company just can’t supply enough of the prized tablet to take advantage of one of the world’s hottest selling products.

It’s starting to feel like Apple doesn’t care, either.

“This is a good problem- demand is fantastic,” Apple COO Tim Cook said.

Yes, it’s a good problem to have, but it’s still a problem. If Apple wants to keep its rapidly growing customer base happy, they’ll find a solution somewhere along their supply chain to match supply with a surging demand.

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Just take a look at Apple’s quarterly revenues. The company predicts its third quarter revenues to slip from $28 billion in the second quarter to $25 billion for the third quarter, while gross margins shrink from 41 percent to 38 percent.

For most companies, decreases like that could be the beginning of the end. But this is Apple, a company that works with cutting-edge technology. They’re supposed to be the ones that would figure out a way around the shockwaves the Japan disaster sent out earlier this year.

Instead, they’re stuck with a problem. Apple can call it a good problem all they want, but eventually, any kind of problem can cause issues if left unsolved.