Kogan facing iPhone 5 backlash after shipping delays

Kogan orders for Apple's new iPhone 5 are delayed by more than four weeks

Australian online store Kogan is facing a customer backlash after it admitted orders for Apple's new iPhone 5 would be delayed by more than four weeks.

Kogan claimed earlier this month it would be the "first retailer in the world" to sell the Apple iPhone 5. The company began taking iPhone 5 orders on Friday 14 September and initially advised customers that the first orders would begin to ship on Friday 21 September.

However, Kogan customers who pre-ordered the iPhone 5 through the online store were recently advised that the expected dispatch date has been changed to Monday 22 October. According to a post on the Kogan blog, the company is citing "global supply delays" as a reason for the hold up.

"We're very sorry for the delay. This is due to global supply issues, as with all Apple iPhone 5 orders around the world (including direct from Apple)," reads a comment on the blog by a Kogan employee.

"We did state clearly on the order page that this was a preorder for an expected dispatch date which was subject to change. We are working very hard to fulfil all orders on a first come, first serve basis."

PC World Australia contacted Kogan to clarify the stock issue. The company says it is not isolated in dealing with the issue of iPhone 5 stock shortages.

"While the situation is unfortunate, Kogan has not been isolated in dealing with this issue," said a Kogan spokesperson. "Even the Apple Store now has a '3-4 week' delay listed on their website."

In addition to the shipping delay, Kogan has also increased the price of iPhone 5 models by $50 each since it first advertised the iPhone 5. It now lists the 16GB, 32GB and 64GB iPhone 5 variants for $749, $849 and $999, respectively. Kogan says the price "is subject to change in line with the best deal we can obtain for our customers."

A screenshot from the Kogan Web site, detailing the
A screenshot from the Kogan Web site, detailing the "expected" dispatch date of 22 October.

"Please note Apple products may be subject to strong demand on launch, and availability of stock may be scarce or delayed," reads a notice on Kogan's iPhone 5 purchase page. "The 'expected dispatch date" is not a guarantee, and may be delayed (or brought forward) without notice."

Kogan has offered all iPhone 5 customers affected by the shipping delay a $25 gift voucher to use towards goods in the Kogan store, but says customers are welcome to refund their order if they wish. A Kogan spokesperson confirmed any customer who proceeds with a refund will still be offered the gift voucher.

"If you are able to get it [the iPhone 5] sooner elsewhere, you are welcome to refund your order with Kogan immediately and we will still give you the voucher you can use on other goods," reads a comment by a Kogan employee on the store's blog.

The iPhone 5 listed for sale on Kogan is model A1429, which is a global GSM variant of the iPhone. This is the same model that Apple sells in Australia, though Kogan's model is a grey import device sourced from Hong Kong.

A grey import tech product is one that is imported from another country without the permission of the intellectual property owner, in this case Apple. This can be achieved by an Australian business that buys the product overseas and then sells it online, or simply an International business that will ship the product to Australia.

Did you purchase an iPhone 5 from Kogan? What are your thoughts about the delay? Let us know in the comments below!

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Ross Catanzariti

Ross Catanzariti

PC World

5 Comments

Daniel

1

Yeh I preordered an iPhone 5 on Friday, one week before the launch on the next Friday, the 21st. I was hoping to be one of the first shipped on the launch date because I was very quick in my preorder compared to others. I was devastated to see the email from Kogan on the launch date about delays up to 3-4 weeks, the same as on the apple website. I will wait until the 28th, and if I don't hear anything by then, then I'll probably try and get one from the local store in my area and get a refund from Kogan. I mean its a great saving for a great phone but I don't want to wait that long for a phone I've already paid for.

Troy Zardus

2

At least Kogan have had the decency to inform customers and offer a refund. I had one preordered through Telechoice who promptly processed the contract on the release day without supplying me with a phone.I recieved an email from optus asking me how i am enjoying my new phone and new premium plan, when i approached the telechoice manager I was told that i could cancel the order but all cancellation fees would be enforced. When i asked when the phone was estimated to arrive he said he couldn't give me a time frame and it would take longer because i wanted a 32 gig model(yeah and he was serious). I was until after a hefty amount of phonecalls with optus themselves being charged for a premium plan on my now discontinued iphone 3gs. If anyone else is in this situation be assured that you can in fact get out of the contract, although they will not admit this easily. i still don't have a phone but I am not paying a premium price for not having one.

Andrew

3

I pre-ordered the 32gig black iphone 5 on Saturday when it was $100 less than Apple...phew...just made that one in! I anticipated that there was going to be a delay....you just have to look at past Apple events when new products are launched! I am prepared to wait till say first week of Nov...if it hasnt arrived yet..well then i will be asking questions!! In the meantime, it has given me a chance to organise my nano sim, look for a case etc.etc.etc.......

wwz

4

I'm one of the customers who per-ordered iPhone 5 from Kogan. I'm very disappoint about the delay. Kogan offers a $25 voucher for the delay, but for me, its useless. The price is right, cheaper $80 than Apple store, even may be gotta keep waiting until NOV.

Dean

5

I was an early orderer with Kogan and am very dissappointed. They clearly had no access to stock and where never in a position to meet the advertised shipping timeframe they originally stated on their site. This guerilla marketing has confirmed i will never be using them again. Unfortunately i have no other option but to wait for my phone considering that due to Kogan's late anouncement of no stock, i missed all other pre-order possibilities.

This is the reason we have the ACCC in this country. Let's hope they do their job on Kogan (which wouldn't be the first time).

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