ELi5: With the news of the new xbox and ps5 coming out soon, preorders have sold out everywhere. This happens every time a new console is released but with other electronics like new cell phones this doesn’t seem to be a problem. How come?
In: Technology
b/c they release without having ample stock for cover all demand. they don’t build up 100M units and then sell. they build 1M units (as as many are there are a batch size) and then sell, and then make more as fast as they can. so in the beginning when demand is super high, it’s going to take a while for production/inventory to catch up.
cell phones do sell out on day 1 as well. it’s happened many times for iphones/galaxies. maybe less so now, b/c phones are not getting as innovative as much. you’ve heard of people camping out in front of best buy/apple store for a week before a new phone release right?
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