Apple ties up shipping capacity out of China, making it difficult for rivals to book flights

posted by Alan F. / Sep 06, 2014, 10:42 AM

Apple ties up shipping capacity out of China, making it difficult for rivals to book flights

Apple is expected to be adding to its mobile lineup this year. As a result, the tech titan has had to secure plenty of shipping capacity from China to other countries throughout the world. This has caused headaches for other companies also looking to move products out of China. One manufacturer was told by a shipper that it couldn't meet a promised deadline, because it had to take care of a "very important customer".

Apple has always dominated shipping capacity out of China, during this time of the year. In 2012, FedEx told its employees to be prepared for a surge in shipping volume. That was the year that the Apple iPhone 5 was launched. This Tuesday, Apple is expected to introduce a 4.7 inch Apple iPhone 6. There is also a strong possibility that we could see a 5.5 inch iPhone phablet unveiled, along with the long awaited Apple iWatch. Wait, there's more. The Apple iPad Air 2, and a refresh version of the Apple iPad mini with Retina display, could both also see the light of day this Tuesday.

Most of these devices will start shipping before the holiday shopping season ends, although the iWatch could be delayed until 2015. Still, as we noted, Apple has been booking large amounts of shipping capacity out of China, leaving companies like FedEx and UPS with very little room for Apple's competitors like Samsung.

source: TechCrunch

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28 Comments

1. SIGPRO

Posts: 2815; Member since: Oct 03, 2012

Yes you know why the iphone 6 will suck and they need to sell a lot! Apple -1000

posted on Sep 06, 2014, 10:45 AM 0

9. darkkjedii

Posts: 30968; Member since: Feb 05, 2011

That's stupid, and something a fanboy would say. It'll be the suckiest top selling phone of the year, like it always is.

posted on Sep 06, 2014, 11:49 AM 3

19. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Of course it will, hypocrites and zombies (hypocrite zombies?) make the best customers.

posted on Sep 06, 2014, 1:11 PM 1

22. darkkjedii

Posts: 30968; Member since: Feb 05, 2011

U mad bro?

posted on Sep 06, 2014, 2:45 PM 3

2. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

Umm. What. Do phones ship on airplanes? Why? Isn't shipping with ships a lot better options for these huge amounts?

posted on Sep 06, 2014, 10:51 AM 1

3. bigdawg23

Posts: 467; Member since: May 25, 2011

Everything Apple and Samsung produce in China leave via airplane. What other options are there that happen in a timely manner to the US? Ships take 4 weeks. Also planes are much securer.

posted on Sep 06, 2014, 11:06 AM 7

4. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

Ok cool. More job for pilots :) Yeah but the production has started already a long ago so they would have time to ship on ships.

posted on Sep 06, 2014, 11:11 AM 1

7. techspace

Posts: 1037; Member since: Sep 03, 2012

They start early, but they don't pack them and ship them a month before announcement.

posted on Sep 06, 2014, 11:32 AM 1

10. darkkjedii

Posts: 30968; Member since: Feb 05, 2011

Good non fanboy post, simply told it like it is, Apple is a huge tech company, that moves lotsa product. Planes do it better than ships. +1

posted on Sep 06, 2014, 11:51 AM 1

12. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

I thought it's the otherway around. I mean ships fit a LOT more products and cheaper. Ok I don't mind because I love planes and flying but it still seems weird.

posted on Sep 06, 2014, 12:04 PM 1

14. darkkjedii

Posts: 30968; Member since: Feb 05, 2011

Speed my man, that's why they charge a little more to ship by air vs ground.

posted on Sep 06, 2014, 12:19 PM 0

15. heyhoa

Posts: 36; Member since: Jul 18, 2014

Shipping method depends on what kind of cargo it is. It's better to ship via air for products like smartphones which are small and light in size and weight but expensive. Shipping cost per unit of iPhone 6 will probably be less than 0.3% of the FOB price. And for a consumer electronic products, lead-time to retail market is very important too as new tech comes every minute.

posted on Sep 06, 2014, 12:29 PM 1

5. gadgeteer

Posts: 45; Member since: Sep 06, 2014

Having failed to stop competition in the courts, could Apple have found a more effective strategy? No. Apple, please start innovating again. You have become bland and boring.

posted on Sep 06, 2014, 11:22 AM 4

26. stealthd unregistered

This isn't really new. Apple gets such high demand for their devices they sometimes end up buying all of a companies inventory of certain components. Same thing here, buying up all the shipping capacity. It doesn't really have anything to do with competition.

posted on Sep 06, 2014, 5:23 PM 1

6. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Welcome to supply suppression. Sammy played the game with suppliers for the OG HTC One. Now Apple is doing the same thing with shipping companies. Even if the planes fly empty. Interesting how labor violations are back again in Apple's supply chain. Don't buy iToys this shopping season to send a message to Apple about their ethics.

posted on Sep 06, 2014, 11:26 AM 4

8. Salazzi

Posts: 537; Member since: Feb 17, 2014

how about not buying Samdung devices? Oh I guess they're oh so ethical.

posted on Sep 06, 2014, 11:47 AM 2

16. heyhoa

Posts: 36; Member since: Jul 18, 2014

They are doing far better than Apple's contractors like Foxconn. Samsung's phones are produced at their on factories, not by OEM contractors.

posted on Sep 06, 2014, 12:33 PM 1

20. willard12 unregistered

Samsung phones are assembled by contracted factories in China and Vietnam. Not sure where you came up with this one.

posted on Sep 06, 2014, 1:16 PM 5

25. stealthd unregistered

"far better" LOL no, not even close. http://www.theguardian.com/world/2014/feb/05/south-korean-film-claims-sickness-samsung Btw Samsung actually has a lot of phones made in China too.

posted on Sep 06, 2014, 5:21 PM 1

11. darkkjedii

Posts: 30968; Member since: Feb 05, 2011

You're starting to get bad with your trolling man. Please go back to being a techie. What's an iToy BTW?

posted on Sep 06, 2014, 11:53 AM 2

17. machello

Posts: 35; Member since: May 03, 2013

Itoy is the most perfect working mobile Phone anywhere on this planet and beyond. Not any android crappp obviously. Like samsung. Have a nice day.

posted on Sep 06, 2014, 12:35 PM 1

23. darkkjedii

Posts: 30968; Member since: Feb 05, 2011

Ohhhh, you mean the iPhone. Now I got it...thanx.

posted on Sep 06, 2014, 2:47 PM 0

13. Ninetysix

Posts: 2962; Member since: Oct 08, 2012

Why didn't you add the other companies? Should everyone avoid Dell, HP, Lenovo, HTC, & Motorola as well? "The facility in question is located in Suqian, China and is owned by Taiwan-based Catcher Technology. The factory is tasked with manufacturing the aluminum bodies of iPads and MacBooks, but it also produces parts for Dell, HP, Lenovo, HTC and Motorola "http://www.phonearena.com/news/Labor-violations-uncovered-in-Apples-supply-chain_id60318 Also why didn't you mention Samsung?http://www.phonearena.com/news/New-reports-of-child-labor-in-Samsungs-supply-chain_id58050

posted on Sep 06, 2014, 12:10 PM 1

18. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

So, just because everyone does the labor violations thang, it is okay? Any company that turns a blind eye to labor violations should be penalized. Ironically, BB has a fairly clean record for labor violations.

posted on Sep 06, 2014, 1:03 PM 2

21. Ninetysix

Posts: 2962; Member since: Oct 08, 2012

Thank you. Now we're on the same page. Next time add the other companies to your crying instead of isolating the issue to Apple only.

posted on Sep 06, 2014, 1:45 PM 1

24. -box-

Posts: 3991; Member since: Jan 04, 2012

Apple also has the most power to put a stop to it. Over $100 BILLION sitting tax-free in offshore accounts, plus known power for being a high-demand client, so semi-guaranteed work for those that comply with their requirements. They could have factories in virtually perfect conditions with workers making well over the US minimum wage and still turn profits. There's like a 60-80% profit margin average on all of apple's products, so there's massive room for labor improvements without sacrificing final consumer cost or solid profits.

posted on Sep 06, 2014, 3:43 PM 2

27. Topcat488

Posts: 1415; Member since: Sep 29, 2012

WHAT'S NEW... Apple has played the "schoolyard bully", from the first day. And has the "school director" Mr. Obama to rule in his favor. No use to fight back by the other Samsung students, because if the Principal ban Apple, Mr. Obama will overturn the ban.