iPad market research

Introduction on iPads

iPad is the first tablet computer developed by Apple Inc.

What are iPads?

It was announced on January 27, 2010 and released on 3 April 2010

How is the price of iPad determined?

Producer first take into consideration the production cost of the iPads and how much profit they want to earn from the sale of it.

The price of substitutes

Price of iPads should be set at a price that is reasonable

The taste of consumers and their expectation of iPads determine how much they are willing to pay.

WHAT are the products related to iPad?

Applications and games for iPads

Screen protectors

Chargers

Ear piece

HOW are the products related to iPad?

Applications and games for iPads

Screen protectors

Chargers

Ear piece

These products would either be necessity for the usage of iPads or would enhance their satisfaction when using the iPad.

satisfaction

necessity

necessity

necessity

HOW are the products related to iPad?

When the demand for iPad increases

demand of the complements increases

resulting in a increase in price of complements

These products would either be necessity for the usage of iPads or would enhance their satisfaction when using the iPad.

Substitutes

Taste

Increase in disposable income

Government legislation

Recent Development

Increase in Disposable income

iPad is considered as a form of luxury good

iPads would have a higher income elasticity of demand (YED> 1).

When disposable income

more than proportionate in demand luxury goods

To maximize total revenue, Incease total output

collaborating with other luxury brands to sell limited edition series of iPads

Development of SubstitutesThe development of substitutes for example, Blackberry’s

playbook, Samsung Galaxy Tab, Android Tablets

Consumers may choose the cheaper and equally competent substitutes as it is more rational to switch to alternatives, causing the demand of iPads to drop.

In the near future, there is likely to be development more computer tablets

more choices for consumers and creates competition for iPad.

The greater availability of substitutes

demand for iPads price elastic (PED > 1).

firms should lower the price of iPads in order to increase total revenue as it will lead to a more than proportionate increase in quantity demanded.

continuous price reductions may not be a feasible method in the long run

as this may result in price wars as Apple may face retaliation from rival companies.

However,

In the long run,

product development and promotion activities

firms could focus more on advertisement

If it is successful, the demand for iPads would be more price inelastic, and would be less affected by the substitutes.

advertising and product development is costly, and can be detrimental to short run profits.

However,

Taste of ConsumersiPads have a unique design which makes it different as compared to other tablets.

It weighs only 601g and measures (9.50" x 7.31" ).

Its lightweight and compact design allows users to be able to use the product more conveniently.

Its attractive design further improves iPad’s marketing and popularity to consumers.

9.50"(241.2 mm)

7.31" (185.7 mm)

Apple also did product development

1. Improvement in physical appearance such as colours of the iPad to make it more stylish

2. development of iPad 2, which have various new features.

Instant On

Multi-Touch

iOS 4.The world’s most advanced mobile operating system.

Government legislation

Apple’s iPad has received a safety certification mark from Chinese regulators

iPads have been made available in the China market.

The increase in availability of iPads in the market

increase the supply of iPads to the China market 

increase in demand for iPads as it is now easier to get hold of a iPad.

Apple can either choose to

raise price to lower quantity demanded for iPads.

Conclusion

Recent developments would affect demand of iPads

to increase total revenue.

Marketing and pricing decisions should change as a reaction to it

Thank You!