ipad economics members viola shermayne tsui yan audrey sheana pei yi

IPAD

ECONOMICS

MEMBERS

Viola

Sher

mayne

Tsui

Yan

Audr

ey

Shea

na

Pei Yi

PROJECT A

V

IOLA-When did the iPad first originated?

S

HERMAYNE-How is the price of the iPad determined?

T

SUI YAN-What are the related/associated products of the iPad? -How are these products related to iPad?

ORIGIN

FEATURES

HOW IS THE PRICE OF THE IPAD DETERMINED ?

 iPAD MODEL PRICE

16 GB Wi-Fi only USD 499

Wi-fi+3G USD 629

32 GB Wi-Fi only USD 599

Wi-fi+3G USD 729

64 GB Wi-Fi only USD 699

Wi-fi+3G USD 829

Selling Price:

HOW IS THE PRICE OF THE IPAD DETERMINED

iPAD MODEL PRICE

16GB Wi-Fi only USD 229.35

Wi-Fi + 3G USD 257.65

32GB Wi-Fi Only USD 258.85

Wi-Fi + 3G USD 287.15

64GB Wi-Fi Only USD 317.85

Wi-Fi+3G USD 346.15

Estimated Cost Price:

HOW IS THE PRICE OF THE IPAD DETERMINED ?

A

pple makes a significant amount of profits-Why is Apple able to get us to pay such a high cost?

We are willing and able to pay that sum of money for iPads.

This has led to a HIGH DEMAND which induces them to increase their supply.

However Apple requires higher prices to produce more in the short run

thus enabling Apple increase its selling price. In conclusion, the cost of an iPad is

basically set by Apple to maximize profits as seen from the tables.

WHAT ARE THE RELATED PRODUCTS OF THE IPAD?

Substitutes

Items which are have uses similar to that of the

iPad

Complements

Items which require the presence of the iPad for

usage

IPAD SUBSTITUTE: NOTION INK

• First to have Pixel Qi screen integration

• First example of the huge revolution that comes with ARM Cortex A9 Power and a Pixel Qi.

IPAD SUBSTITUTE: MICROSOFT COURIER

• Match Apple when it comes to user interface innovations

• Folding dual screen that is more like a pen and touch-controlled digital journal and eReader at the same time

IPAD SUBSTITUTE: HP SLATE

• Features include 10-inch multi-touch screen, Windows 7, supports Flash video playback, Wi-Fi Bluetooth

IPAD SUBSTITUTE: THE ICD ULTRA

• 7-inch resistive single-touch display, 256MB of RAM and 512MB of ROM, 4GB internal flash memory and 3G option.

IPAD COMPLEMENT: ZAGGMATE IPAD CASE

• Features a hinge stand, and optional wireless Bluetooth keyboard for easy typing

• QWERTY keyboard offers special function keys for music control, volume control

IPAD COMPLEMENT: IPAD KEYBOARD

• Combines a dock for charging your iPad with a full-size keyboard, which includes special keys that activate iPad features.

PROJECT B

Discuss how recent developments would affect your marketing

and pricing decisions for the iPad.

FACTORS AFFECTING DECISIONS

Producer’s Point of View

Price

Taste

Price

Cross Elastici

ty of Deman

d

Demand

Consumer’s Point of View

FACTORS AFFECTING DECISIONS

Producer’s Point of View

Price

Taste

Price

Cross Elastici

ty of Deman

d

Demand

Consumer’s Point of View

CONSUMER’S POV: PRICE

M

ore substitutes

i

Pad becomes increasingly price elastic

Q

ty dd > proportionate amount

E

arn total revenue

POV: Point of View

FACTORS AFFECTING DECISIONS

Producer’s Point of View

Price

Taste

Price

Cross Elastici

ty of Deman

d

Demand

Consumer’s Point of View

L

ighter

W

ider variety of applications

W

atch movies

S

urf the net

E

book

POV: Point of View

CONSUMER’S POV: TASTE

Demand for substitutes,

Demand for iPad,

In price equilibrium,

Qty dd

FACTORS AFFECTING DECISIONS

Producer’s Point of View

Price

Taste

Price

Cross Elastici

ty of Deman

d

Demand

Consumer’s Point of View

POV: Point of View

PRODUCER’S POV: PRICE

Change in price = Change in position ALONG

supply curve

price of iPads, qty dd for iPad,

profits

rational behaviour*Central Economic

Problem*Firms’ aim:

Maximise Profits

FACTORS AFFECTING DECISIONS

Producer’s Point of View

Price

Taste

Price

Cross Elastici

ty of Deman

d

Demand

Consumer’s Point of View

POV: Point of View

PRODUCER’S POV: XED

X

ED is the Cross Elasticity of Demand.

POV: Point of View

Non-price competitive alternatives

Complementary sales

Providing more details of the iPad

Demand , Profits

FACTORS AFFECTING DECISIONS

Producer’s Point of View

Price

Taste

Price

Cross Elastici

ty of Deman

d

Demand

Consumer’s Point of View

POV: Point of View

PRODUCER’S POV: DEMAND

S

ubstitutes , Choices

profits

P

rofit motivated firms can do a better job.

POV: Point of View

BIBILOGRAPHY

h

ttp://www.ipad-answers.com/is-there-any-substitute-for-the-ipad/

h

ttp://www.netbooknews.com/3065/top-5-ipad-alternatives-do-you-think-they-stand-up-to-

the-ipad/

h

ttp://www.mydigitallife.info/2010/11/15/zaggmate-ipad-case-with-integrated-wireless-

bluetooth-keyboard/

h

ttp://www.videoipadconvertermac.com/ipad-accessories/ipad-keybaord.html

http://www.buzzle.com/articles/ipad-cost.html 

BIBILOGRAPHY

http

://www.ipad-answers.com/is-there-any-substitute-for-the-ipad/

http

://www.redmondpie.com/ipad-vs-galaxy-tab-comparison/

http

://www.slashgear.com/ipad-vs-galaxy-tab-16102821/

http

://www.apple.com/ipad/

http

://www.diffen.com/difference/Samsung_Galaxy_Tab_vs_iPad

http

://www.msnbc.msn.com/id/40094205/ns/technology_and_science-wireless/

http

://www.bloomberg.com/news/2010-11-18/rim-s-rival-to-ipad-wins-fans-as-corporate-customers-seek-secure-

tablets.html

http

://www.bloomberg.com/news/2011-01-31/android-tablets-gain-on-ipad-in-fourth-quarter-researcher-says.html

THE END