A new report claims that Microsoft had only ordered 30,000 Microsoft Bands when launching the wearable last Fall. It was sold out very quickly with no new stock for weeks.
Microsoft was too conservative in estimating the number of units of Microsoft Bands they would sell. The Software giant launched the Microsoft Band end of October and it was sold out very quickly and Microsoft was not able to replenish stock for the rest of 2014.
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In early 2015 new stock arrived and now Microsoft also launches the $199 fitness tracker in the UK as next market. The company also partnered with the WWE to promote the Band.
SuperSite for Windows reports that they have learned that Microsoft only ordered 30,000 units of Microsoft Bands for the launch. Microsoft got surprised by the demand and apparently did not have a plan to ramp up production to restock.
Microsoft is not commenting on this report. One reason why Microsoft was that conservative with the Microsoft Band was the huge loss on the Windows RT and Surface 2 tablets. Microsoft had to write down almost a $1 billion because they made to many.
Clearly it is one of the most difficult tasks for a hardware maker to estimate demand. Software can just be copied, but hardware needs to be made and the whole process needs a lot of lead time starting with sourcing components.
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Apple is getting hit with shortages almost with each new product launch. The reason for that is just plain capacity as demand outstretches manufacturing capacities in Asia. In the end though it is always the consumer who is suffering the most. Either he has to wait or pay premium on secondary markets to get the gadget he wants.