Economics

iPad Research

When did the first

iPad originate?

US market: April 3, 2010

Internationally: May 2010

How is the price of iPad

determined?1. Through Demand

Price and non-price factors affect demand of iPad. Example, when the price of iPad increase, quantity demanded for iPad will decrease while when price of substitutes decrease, demand for iPad will decrease.

How is the price of iPad

determined?2. Through Supply

Price and non-price factors affect supply of iPad. Example, when price of iPad increase, the quantity supplied will increase while when state of technology become more advanced, supply of iPad will increase.

How is the price of iPad

determined?Hence, the price of iPad is determined by the interactions through demand and supply.

Cover

Stand

Keyboard

dork

Complementary goods

iPad

Dock

Complementary goods

iPad 10W USB adapter

tv and video

connectors

iPad protectorspeakers(portable/

non-portable)

Laser Pico projector

Competitive goods

Consumers POV

Andriod tablet costs $299 and iPad costs $499 when both products satisfy the same demand (basic feature and internet connectivity). Hence, consumer would purchase tablet PC instead.

PRICE OF SUBSTITUTES

Effect: Selling price of Ipad would be slightly lowered to compete with tablet PC

Ipad provides a more applications than tablet PC hence provides maximum satisfaction. However, tablet PC contains features such as Flash and multitasking capabilities which is superior to that of iPad. Thus, consumers would prefer tablet PC over Ipad.

TASTE

Effect: The way of marketing of Ipad would be centered on attracting consumers via the variety of applications that will provide consumers maximum.

Consumers POV

Producers POVPrice of the product

An increase in the price of iPad will increase the quantity supplied of iPad. The prices of each iPad have been cut by $100. Thus, the quantity of iPad being supplied will fall as well.

Effect: iPads would be heavily discounted. When the price falls, more people are willing and able to buy, and as the target crowd expands, more people would be influenced to purchase iPad.

Changes in the number of sellers

An increase in production of iPad is reported with increasing demand as Apple ramps up iPad production drastically. Apple will continue to dominate the tablet industry. Effect: iPad will continue to be heavily demanded if prices does not rise. For maximum profit gain, producer would not increase the price. Also, less consumers will be willing to pay.

Producers POV

Acknowledgements-http://www.apple.com/pr/library/2010/03/05ipad.html-http://www.quora.com/Why-are-the-2011-iPad-competitors-priced-higher-than-the-iPad

Thank you for your

kind attention Done by:EuniceYi LingJuliaAfshinAaronTeck Hui11S301