{"id":8396,"date":"2014-09-15T16:17:26","date_gmt":"2014-09-15T16:17:26","guid":{"rendered":""},"modified":"2014-09-15T16:17:26","modified_gmt":"2014-09-15T16:17:26","slug":"my_question_for_the_apple_techies","status":"publish","type":"post","link":"https:\/\/admin.rushlimbaugh.com\/daily\/2014\/09\/15\/my_question_for_the_apple_techies\/","title":{"rendered":"My Question for the Apple Techies"},"content":{"rendered":"

\"Listen<\/a><\/p>\n

RUSH: I need some help from you people, you tech experts in the audience, because I\u2019m at my wits\u2019 end. I\u2019ve asked I don\u2019t know how many people, and there\u2019s nobody that has the answer to my question. Nobody! Now, I haven\u2019t been able to get to the people who do have the answer that would be at Apple.<\/p>\n

I don\u2019t know who to call at Apple. I don\u2019t know how to get an answer. I don\u2019t know where I would go if I called Apple. I don\u2019t know who I would ask for and I doubt anybody would pick up the phone. But here\u2019s the question. Apple makes<\/a> — when they\u2019re at peak production on the assembly line — 500,000 iPhones a day. Yeah, in a 24-hour day, they can make 500,000 iPhones.<\/p>\n

That means in a quarter they can make 45 million phones, if they\u2019ve got the guts, if they\u2019ve got all the equipment that is needed to make a phone, if they\u2019ve got enough supply in the supply chain, but that\u2019s the peak. They\u2019ve got two phones coming Friday. They\u2019ve been in production, one of them since July, and it\u2019s questionable when the larger (the 5-1\/2-inch phone) got started in mass production.<\/p>\n

It\u2019s rumored that it\u2019s in shorter supply than the 4.7-inch phone. Anyway, when they started manufacturing these phones — and there are millions already made and boxed up. There are millions that are made. They\u2019re boxed. They\u2019re in cellophane. However, the operating system is still not ready… Well, it will be tomorrow. Wednesday. The operating system, the new iOS 8 is going to be released to the public on Wednesday.<\/p>\n

<\/a>My question\u2019s very simple: When you\u2019ve got millions of phones already manufactured while your operating system is still in beta, how do they get the new operating system on millions of new phones that are already finished (the manufacturing process) and are boxed up in a warehouse and all shrink-wrapped? How in the world is that done?<\/p>\n

I have asked for years I don\u2019t know how many people, and the best answer is, “Well, it\u2019s mass Wi-Fi.” No, it can\u2019t be Wi-Fi. There\u2019s no way to guarantee that Wi-Fi on millions of phones transfer the operating system, and when you get your phone and open it and start it up, it better work. You can\u2019t have an operating system that\u2019s not properly installed.<\/p>\n

I\u2019ve even said, “Okay, is all this beta release of the software a joke, and have they actually finished the final product back in June or July and it\u2019s ready all the way back then, and they put it on the phones on the chip when it\u2019s manufactured?” Because if it\u2019s not — if the operating system really doesn\u2019t finish its beta-testing period until late August — how do they get the new iOS 8 on millions of phones that are already made and boxed up in a warehouse ready for sale?<\/p>\n

Now, I know how they mass produce CDs and DVDs. If you have a home recorder, and you want to dub a DVD, you burn it. What can it take, an hour, depending on what you\u2019re putting on a DVD? Well, they can\u2019t do that. They mass produce \u2019em. They stamp \u2019em. They just run \u2019em through a stamper, just like used to make vinyl records. Stamp the damn things lickety-split and go through. But how can you do that with a phone?<\/p>\n

Nobody that I\u2019ve talked to — and I\u2019ve talked to some wizards. You know, nobody\u2019s even thought about it. That\u2019s how weird I am. Nobody\u2019s even thought to ask. I even asked Snerdley. I figured if anybody would know something as obscure as this, Snerdley would know of it, and he had never thought of it. He had never pondered it. (interruption) Now Snerdley says it\u2019s a brilliant question.<\/p>\n

I don\u2019t think anybody cares. This is the thing. They just use it. They get the phone, they open it up, and everybody is all excited. On Friday they turn it on, and… In fact, I\u2019ve got a publication called How It Works. I looked at How It Works. I can\u2019t even get close in a search term so How It Works even understands what I\u2019m asking. I\u2019ve Googled. I\u2019ve Wikipediaed.<\/p>\n

I\u2019ve done everything I can think of. I know how to structure search terms on the Internet. I cannot even get an answer that\u2019s even close to what I\u2019m asking. Nobody knows. But there has to be a way to get the new operating system on gazillions of phones in a very, very short period of time. ‘Cause those phones are made while the operating system isn\u2019t ready to go yet. It\u2019s still in beta testing.<\/p>\n

Okay, that\u2019s that.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: We have a guy here from Brenham, Texas, named James who thinks he\u2019s got an answer to the question I asked in the first section of the program. Hi, James. I\u2019m glad you waited.<\/p>\n

CALLER: Hi, Rush, and 1992 dittos.<\/p>\n

RUSH: I appreciate that. Thank you.<\/p>\n

CALLER: Yeah, the question you asked about the iPhone is — and the answer is they don\u2019t keep them in warehouses like you were, you know, positing there. You\u2019ve heard of Just-In-Time Inventory? That\u2019s kind of what they do. That\u2019s kind of Tim Cook\u2019s thing. He doesn\u2019t keep a lot of inventory sitting around. So when the new OS is ready to go, they may have a couple of days in the pipeline, but as soon as that thing\u2019s ready to go it\u2019s in production. So there\u2019s only a couple-of-day lag.<\/p>\n

RUSH: Well, now but here\u2019s… I understand that after things get up and running and the original demand has been met. But they have ordered 80 million iPhones to be manufactured between now and the end of the year. That is a given. They started manufacturing one of these two new ones in July. They know that last year, in the first weekend, they sold nine million phones. They had to be able to hand deliver — either at their stores or via FedEx — nine million phones.<\/p>\n

They didn\u2019t make those nine million phones in one week, before they were sold. They were made, and they were stocked someplace. They have to get a head start if they\u2019re gonna be able to meet demand on opening weekend. So they started in July. Now, maybe they don\u2019t put the phones in boxes and wrap \u2019em up. Maybe the phones are kept until one week before shipping them out of China. Maybe that\u2019s where you\u2019re right.<\/p>\n

CALLER: Well, you know, when you buy… Any time they release a new phone… For instance, that\u2019s why there\u2019s a lag between the announcement and when they\u2019re actually shipping. I don\u2019t know when the actual gold master of the new OS was finished, but, you know, they\u2019re working around the clock over there. You know, and if you\u2019ve ever ordered a brand-new iPhone –which I know you have — they FedEx it to you directly from China.<\/p>\n

RUSH: Right.<\/p>\n

CALLER: So it\u2019s happening almost in real time. They\u2019re churning \u2019em out as fast as they can.<\/p>\n

RUSH: I know. They can make 500,000 a day.<\/p>\n

CALLER: Yeah.<\/p>\n

RUSH: Let me restate the question for people just tuning in. They\u2019ve got, on opening weekend… Look, they sold this past weekend, just in pre-orders, four million phones that are gonna be ship starting… Well, probably now. They\u2019re gonna be delivered Friday, four million phones. Those four million have to be somewhere. And those four million phones were made. They can\u2019t make four million phones this week.<\/p>\n

So those phones have to be somewhere without an operating system on them. Somehow they\u2019ve got to get the OS on those phones that are already made before they ship them. And my question is, how do they do it? It\u2019s a physical nightmare to me. They can\u2019t plug every phone into a computer and transfer the OS. So do they do it with Wi-Fi?<\/p>\n

Do they have hundreds of thousands of phones in the warehouse before they put \u2019em in boxes and transfer the OS, the “gold master,” which was released publicly last…? Well, it\u2019ll be public Wednesday, but last Tuesday it actually was in the wild. It was given to developers. So it\u2019s probably finished a week before that, maybe even earlier.<\/p>\n

But my point is, from this point on, the OS will be part of the manufacturing process, but it isn\u2019t part of the manufacturing process for the first number of millions of phones. And for those phones, I\u2019m just wondering how they get the OS on them en masse, after they\u2019ve made everybody else. It\u2019s gotta be Wi-Fi. It\u2019s gotta be Wi-Fi in their warehouse before they ship them. I don\u2019t know how else to do it.<\/p>\n

CALLER: I don\u2019t know. The only thing I can think of is that that\u2019s why supply is so constrained on these new phones whenever they\u2019re first coming in. You know, the stores, the Apple Stores still only get a box or so a day for the first two or three weeks.<\/p>\n

RUSH: Right.<\/p>\n

CALLER: That\u2019s gotta be why. You know, they\u2019re trying to catch up.<\/p>\n

RUSH: I don\u2019t think it\u2019s… That\u2019s a good thought, but I don\u2019t think it\u2019s the operating system that causes a supply problem. I think the supply problem… I don\u2019t want to get too in the weeds here on this. This is stuff people really don\u2019t care about. But the supply problem is subject just to rumors. Nobody really knows why they can\u2019t meet demand on opening week. I don\u2019t think it\u2019s the opening.<\/p>\n

I don\u2019t think it\u2019s the operating system. (interruption) Four million US. Ah, four million worldwide. I forget. I think it\u2019s… No, it was the UK, wasn\u2019t worldwide. There were only a few countries you could order in advance and then like 24 other new countries get added in, so they\u2019ve gotta do stock for every country they introduce the phone in. Even if it\u2019s just 10 phones for that country, they\u2019ve gotta have them.<\/p>\n

But to me this is just a tech question. It\u2019s not a manufacturing question, it\u2019s a tech question: How do they get the OS on millions of phones at one time in a week before they ship them out? Now, after this initial weekend, yeah. They\u2019ll put the OS on as manufactured. My point is they are building and finishing phones before the OS is finalized.<\/p>\n

So how do they get the final finished OS that they\u2019re gonna release on those phones made before the OS of us finished, and it has to be in the millions. I guess Wi-Fi in their warehouse is the only way. My problem is, I don\u2019t know how you verify that it was correctly transferred and installed, because if you… I mean, I\u2019ve never bought a phone that didn\u2019t turn on when I bought it. It\u2019s always worked.<\/p>\n

There hasn\u2019t been a bug in the OS. Maybe it has for some people. Anyway, James, I appreciate your trying to answer my question. I can tell by his answer I may not be actually expressing my question in the right way. But I\u2019ll tell you this much about Apple\u2019s inventory: This is stunning. He is right about their CEO, Tim Cook.<\/p>\n

When he was the operations director… I mean, this, as a business proposition, fascinates me. Do you know that Apple…? Get this, now. Aside from opening weekend of the phone, which is a unique period — but after that is out of the way– just in a normal week at Apple, they turn over their entire inventory every three to four days. That\u2019s how little inventory they have.<\/p>\n

Now, to pull that off and to make sure that when somebody walks into a store and wants something it\u2019s there, and they\u2019re turning that inventory, and everything\u2019s manufactured in China (except for the Mac Pro which is made in Austin, Texas). But only three to four-day inventory. That\u2019s the envy of businesses all over the world. Inventory is death! Unsold product is death to the bottom line.<\/p>\n

Three to four-day inventory that they turn over! We tried to do that with Two If By Tea. It\u2019s not possible. You have to manufacture so much in advance, so many different flavors. You\u2019ve gotta be able to have this and that when people want it. I\u2019m stunned just in my little experiment with my little tea company here, in inventory, to understand. iPhones, iPods, iPod Touches, iPad, iPad Minis, laptops, desktops. Everything they turn over three to four days. Stunning.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Jonathan in Fort Wayne, Indiana, wants to weigh in on the question. How are you doing, Jonathan?<\/p>\n

CALLER: Good. How you doing, Rush?<\/p>\n

RUSH: I\u2019m fine. I\u2019m actually doing quite well. It\u2019s a big week.<\/p>\n

CALLER: Hey, my wife is a big fan of yours. She\u2019s been listening to you since she was six years old. So naturally she got me into you, too. (chuckles)<\/p>\n

RUSH: Well, God bless her. What\u2019s her name?<\/p>\n

CALLER: Sophia.<\/p>\n

RUSH: Sophia! One of my all-time top ten favorite female names to boot. How about that?<\/p>\n

CALLER: Yeah, it\u2019s one of most popular female names nowadays. Funny. It seems to be coming back.<\/p>\n

RUSH: Well, cool. All right, so you have an answer for me on how Apple gets the OS on phones that are already made?<\/p>\n

CALLER: Yeah. I can take a shot at it. I used to work at an electronics manufacturer here in town, BAE Systems. They make airplane engine controls and also flight controls for boat wings. So I think I\u2019ve got a little bit of an inside, and I also used to work in the sourcing department. So I used to have to deal with manufacturing parts and schedules. So I can definitely take a stab at what your question is.<\/p>\n

RUSH: Well, what is it?<\/p>\n

CALLER: Oh, the answer?<\/p>\n

RUSH: Yeah, what\u2019s the answer? (chuckling)<\/p>\n

CALLER: Well, my guess, just being engineer and seeing how it\u2019s been done, a lot of times the gold masters you were saying is most likely internally finalized by Apple probably about a month ago, and they probably send that over to the solderer or wherever is putting the phones together to burn onto the chips for the iPhone, or phones. So they probably have been just putting that in the phones to get ahead for the pre-orders. And the software that\u2019s actually on the chips is probably not the finalized version, either. It probably has some —<\/p>\n

RUSH: Okay. So they put a beta on just to have something in the original manufactured product. They put a beta of the software; then they update it right before they ship it. Okay. That\u2019s an interesting theory, but it still doesn\u2019t answer my question. This is where I think I\u2019m failing as a communicator. Let me try it this way.<\/p>\n

In my quest to answer my question, I found a Bloomberg article on September 11th last year. Let me read the relevant portion to you. “The handsets remain in China while Apple\u2019s software team at headquarters finishes work on the iOS software that runs on the device, said a former Apple manager who declined to be named because the process is private. Once a final version is finished, the software is loaded on the phones.” <\/p>\n

And then it says, “Before Apple\u2019s formal unveiling on stage, iPhones are shipped to distribution centers around the world, including Australia, China, the Czech Republic, Japan, Singapore, the UK and the US, said one of the people with knowledge of the matter.” All right, so we know they manufactured the phones — millions of them, folks — before the operating system is finished. So here\u2019s my question. <\/p>\n

You\u2019ve got a million iPhones — and if you don\u2019t like iPhones, you\u2019ve got a million Galaxy S5s. I don\u2019t care what the phone is. You\u2019ve got a million phones that are manufactured. They don\u2019t have an operating system on \u2019em yet because it isn\u2019t finished. This is only at the rollout. This is not relevant three months from now, or next week it won\u2019t be relevant. They\u2019ll be able to put the OS on every phone as it\u2019s made because the OS is finished. <\/p>\n

When they start manufacturing in July and August to have millions of these things to roll out on opening weekend, there is no operating system ready to go. So you\u2019ve got millions of phones warehoused. Now, the best guess I\u2019ve gotten lately is they\u2019re not in boxes yet; they\u2019re warehoused, and they are waiting for the OS to be finished, so you got millions of them — and if you don\u2019t like that, hundreds of thousands. I don\u2019t care. <\/p>\n

You\u2019ve got hundreds of thousands of phones, every aspect of them ready to go except no operating system. Then the operating system is finished, it\u2019s declared golden master, and it\u2019s time to get the operating system on a million, five million, 10 million phones. My question is: How is that done in bulk? <\/p>\n

When your assembly line\u2019s running, the chip that goes on or in the printed circuit board on the motherboard, the chip will already have the OS loaded when the assembly line puts that phone together. But at the stage I\u2019m talking about, the OS isn\u2019t finished. So you got hundreds of thousands, millions of phones. They\u2019re sitting in a warehouse; then the OS is finished. Do they do it with Wi-Fi over the air? <\/p>\n

Now, this Wednesday, for those of you that have an iPhone, iOS 8\u2019s gonna be released over the air. You\u2019ll go to the System Settings, to Software Update, and it\u2019ll be there. And it\u2019ll take 20 minutes for your phone to do it, download it, install it, verify it, restart, and then you get the setup screen, and you put in your Apple ID or whatever is necessary and you\u2019re off and running. Now, they do that at the same time on a million phones via Wi-Fi in the warehouse? <\/p>\n

Do they do it after the phones are shipped out of China at distribution centers? I don\u2019t know. I\u2019m just curious about how they get an operating system, in bulk, on millions of phones sitting in the corner over there. They can\u2019t connect \u2019em all. Not possible. And, so far, nobody… The best guess is Wi-Fi. Hundreds of thousands, millions, Wi-Fi. It doesn\u2019t matter to anything. <\/p>\n

It\u2019s just one of these questions I\u2019ve always had that I can\u2019t find an answer to. Everybody says, “Well, Rush they build a phone, and they finish the operating system, and they put the system on it.” I know. I just… How does that happen? What kind of Wi-Fi system must they have that doesn\u2019t get bogged down when millions of devices are accessing, or do they stagger it? <\/p>\n

They must. There has to be a simple explanation for this, and I\u2019m sorry that I care. (chuckling) But there are so many of you out there, I\u2019m rolling the dice that somebody in this audience will know, and I\u2019m hoping that whoever it is that knows will get lucky and will be able to get through here and explain it.<\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: I need some help from you people, you tech experts in the audience, because I\u2019m at my wits\u2019 end. I\u2019ve asked I don\u2019t know how many people, and there\u2019s nobody that has the answer to my question. Nobody! Now, I haven\u2019t been able to get to the people who do have the answer that […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","ngg_post_thumbnail":0},"categories":[],"tags":[],"yoast_head":"\nMy Question for the Apple Techies - The Rush Limbaugh Show<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rushlimbaugh.com\/daily\/2014\/09\/15\/my_question_for_the_apple_techies\/\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:title\" content=\"My Question for the Apple Techies - The Rush Limbaugh Show\" \/>\n<meta name=\"twitter:description\" content=\"RUSH: I need some help from you people, you tech experts in the audience, because I\u2019m at my wits\u2019 end. 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