Back in October, Microsoft unveiled the Band, its health- and fitness-focused wearable device, and it didn"t take long before it was completely sold out, both online and in its retail stores. And in the weeks that followed, stocks of the Band continued to sell out almost as quickly as they were replenished.
Indeed, it seems that Microsoft somewhat underestimated demand for the Band, although it has been working to address its supply issues in recent weeks. According to WinSuperSite.com, citing an unnamed source, Microsoft ordered an initial production run of just 30,000 units for the Band"s launch in the United States.
Such limited supply combined with greater-than-expected demand - sizeable queues of Band-buyers were seen at many Microsoft Stores when it launched - meant that many potential buyers were unable to get their hands on the device for some time.
In the last few weeks, stocks have been replenished for online orders, and Microsoft has also announced broader availability of the Band at other US retailers, including Best Buy, Target and Amazon. The company has also boosted production for the Band"s first international launch; pre-orders are already open for the Band in the UK, where it will officially go on sale on April 15.
It"s perhaps not surprising that Microsoft erred on the side of caution when it came to ordering its first production run for the Band, given its experience with the launch of its first-generation Surface RT.
The company wildly overestimated demand for that device, and ultimately had to write down around $900 million in charges associated with "Surface RT inventory adjustments". Earlier this week, Microsoft"s Panos Panay referred to the writedown as an "unbelievably valuable" lesson for the company - although the Band launch shows that it"s still learning to strike the right balance between supply and demand for its devices.
Source: WinSuperSite.com