Smartphones: Symbian, Microsoft, RIM, Apple, and Others Message Board

To: sylvester80 who wrote (1450)	8/29/2012 1:08:54 PM
From: Eric L	of 1561

Days of Inventory ... << What exactly the inventory number that Apple gives at the end of each quarter represents then if not channel inventory which I assume they get from their channel partners? ... is my understanding completely wrong of what "channel inventory" means? >> I can't tell you precisely what the inventory number that Apple (or Nokia or others) gives at the end of each quarter represents or includes. What I can tell you is that it is NOT channel inventory. When a manufacturer gives an inventory number it is a measure of how many days or weeks of their own inventory that are being held in stock at any point in time. It is a measure of inventory and supply chain management and operations efficiency that manufacturers use in one fashion or another although it can vary somewhat from industry to industry and manufacturer to manufacturer. In the case of Apple who has a larger retail presence than most competitive manufacturers it almost certainly includes finished goods in its own stores, and finished but unshipped goods at Foxconn, nut it also most likely includes components (memory, displays, a-processors, etc.) they have manufactured for use in their own goods, and shipped componentry purchased by them or for them. - Eric -