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Demand and Supply WEBQUEST Demand and Supply WEBQUEST Group 4

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Project A

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The iPad originated on the 3rd of April 2010.

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another exclusive product of Apple gained enough publicity and consumer awareness a high demand

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we have to account for the amount of money used in the production of the iPad. the internal processo rs etc. The casing

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Non-AppleApple

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iPad Cases

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iPad Docks

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iPad Camera Connection Kit

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iPad keyboard

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-Convenience; - aesthetic appellation; all to ensure our iPad experience is not shortchanged for the price we are paying; The demand of all these products is a derived demand in part from the demand for iPad.

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Samsung Galaxy TabKindle

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Such goods will decrease the demand for iPad as they are substitute goods.

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Question: Discuss how recent developments would affect your marketing and pricing decisions for the iPad. Focus on two factor from the consumers point of view and two from the producers point of view.

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Recent developments Introduction of iPad substitutes Many countries recovering from recession Short supply of iPad touch-screens Expansion of iPad market into China

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To the consumers...

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o Substitutes likely to cause a fall in demand for iPad. o When there is a rise in substitutes, such as Android tablets, the quantity demanded for iPad will decrease. D1 D2 P1 P2 Android (substitiute) iPad Price Quantity Price

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Hence, price of iPad should decrease to ensure price is comparable to substitutes. More advertisements should be used to promote iPad.

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o Countries like Singapore have experienced economic growth higher income levels o Makes iPad more affordable due to higher income o Producers should lower prices to attract even more as a lower price complements the rise in income of consumers

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To the producers...

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o iPads touch screen has been in short supply o Price of touch screen has risen o Production cost of iPad increases o Hence iPad cost must be increased so as to maximise profits

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o Apples iPad got approval to be sold in China in August last year o Market expansion hence increase in supply of iPad o Apple should increase its prices so as to maximize its profits due to an increase in size of the consumer market

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Producers are should raise their prices for the iPad so as reach a better market equilibrium price. This is seen from the short supply of the 9.7 LED touch screens of the iPad, The price of touch screens, which will lead to unit cost of production of the iPad. Hence in order to increase profits, producers would raise the price of the iPad.

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http://news.cnet.com/8301-31021_3-10450333-260.html http://www.bloomberg.com/news/2011-01-31/android-tablets-gain-on-ipad- in-fourth-quarter-researcher-says.html http://www.bloomberg.com/news/2010-11-18/rim-s-rival-to-ipad-wins-fans- as-corporate-customers-seek-secure-tablets.html http://news.bbc.co.uk/2/hi/8603599.stm http://www.macworld.com/article/153145/2010/08/ipad_china.html http://www.bbc.co.uk/newsbeat/11863568 http://news.bbc.co.uk/2/hi/8590300.stm http://www.bbc.co.uk/blogs/thereporters/rorycellanjones/2010/08/kindle_or _ipad_-_which_will_ch.html http://en.huanqiu.com/business/industries/2011-01/618170.html http://www.theipadguide.com/content/ipad-production-problems- samsung-joins-lg/7174625 With thanks to,