December 2004 was a difficult time for many consumers on the hunt for the more popular Apple iPod models. the strong demand throughout the year apparently didn't give apple management a clear enough indication of the demand during the critically important Christmas season. The iPod accounts for approximately 25 percent of total Apple sales, and the shortages of certain models (especially the variously colored iPod minis hurt not only iPod sales but the sales of other Apple products as well.
To cope with the unexpected surge in demand, Apple managers had to deal with ,manufacturing and distribution constraints. At least time for shipment of production in that facility is longer due to the increased transportation time. marketing managers also implemented strategies to deal with consumer disappointment-including encouraging consumer to check Apple retail stores for the product, or substituting other iPod models for the ones most prone to shortages. Also getting into the act was eBay, which created an iPod category on its site. Consumers able to purchase a popular model in one part of the country offered to sell to bidding consumers in other parts of the country.