28 Oct '11, 1pm

Demand Is the Alpha Dog, Not Supply - EBN

Apple Inc. (Nasdaq: AAPL) didn't invent either the smartphone or the tablet PC. It just created such hot demand for its iPhones and iPads that customers now know every upgrade comes with a "limited supply" tag. On Thursday, I visited a mall on the outskirts of Chicago, and a store attendant told me no outlet in the US had the newly introduced iPhone 4S in stock. It's a problem Apple rivals must wish they could experience, even if only in their dreams. How does Apple do it? I offer this simple explanation: Apple creates a need (demand) for its products, and then it meets that need (supply). Its rivals, on the other hand, manufacture (supply) their products and then go in search of buyers (demand). Dean Kamen, founder of DEKA Research and Development Corp. , helped me reach that understanding with a presentation at the annual executive meeting of the Electronic Components In...

Full article: http://www.ebnonline.com/author.asp?section_id=1038&doc_i...

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