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"Channel stuffing". It's a naughty-sounding term. And one with a long, long history behind it. Suffice to say, Microsoft engaged in the practice last year with the 360, flooding retailers with units "shipped" which they could then count as "sold" in order to bolster their sales figures and meet their "10 million" target. Roger Ehrenberg's blog has the full story, and goes on to say why this has come back to bite Microsoft in the ass.
Bottom line: strong companies confident in their strategy and performance don't do these things. They don't have to. What kind of a message does this type of behavior send to the investor community and, more importantly, your customers? Weakness. Fear. Short-term thinking. Nothing that represents a positive signal for a better, brighter tomorrow.
Great reading, go check it out.
Microsoft, Channel Stuffing and Desperation: Old Tricks for a New Era [Information Arbitrage]
