Comment on Apple Turns Over Its Inventory Once Every 5 DaysparentComments−excuse-me14yThere is a flip side to this. An earthquake in Japan has car factories in the USA sitting idle a year later because of a shortage of parts.A fire at a Foxcon factory in the run up to christmas would really hurt Apple.−philwelch14yIn lost revenues, yes. But that just means less profit. Having inventory on hand and having to sell it at a loss or bury it (like the Lisa, for instance) means actually taking a loss.−arkitaip14yBut would it be worse than having billions in inventory?−excuse-me14yThey have got billions in inventory, it's just on Foxconn's books rather than Apple's.Having very lean stock levels in a retail business can have drawbacks.
Comments
There is a flip side to this. An earthquake in Japan has car factories in the USA sitting idle a year later because of a shortage of parts.
A fire at a Foxcon factory in the run up to christmas would really hurt Apple.
In lost revenues, yes. But that just means less profit. Having inventory on hand and having to sell it at a loss or bury it (like the Lisa, for instance) means actually taking a loss.
But would it be worse than having billions in inventory?
They have got billions in inventory, it's just on Foxconn's books rather than Apple's.
Having very lean stock levels in a retail business can have drawbacks.