Webquest : Market for iPads

First tablet computer developed by Apple Inc.

Perfect for web browsing, viewing photos

Thin & Light

Can import photos from a digital camera or SD card with the iPad Camera Connection Kit

Comes with Bluetooth 2.1 + EDR (letting you connect to devices like wireless headphones)

“I had this idea about having a glass display, a multi-touch display,” - Steve Jobs

Apple’s first tablet computer was in the form of Newton

Message Pad 100 in 1993 and with advancements in

technology, the iPad was introduced on 27th January

2010.

Price

Quantity

Blue lines mean supply and demand during initial release of Ipad.

Green lies mean supply and demand after some time (etc. year Oct. 2010)

Brown lines mean supply and demand post Japan tsunami + improvements in local economies.

What are some of the products related/associated to the iPad? How are these products related to the iPad?

SUBSTITUTE PRODUCT:

IPHONE

COMPLEMENT(S):

IPAD APPS

Q. Discuss how recent developments will affect your marketing and pricing decision of the iPad. State 4 main factors (2 from consumer’s point of view, 2 from producer’s point of view). Use economic tools to support your analysis.

(Case scenario: Japan Earthquake)

Producers :production and distribution delays of critical components for many electronic devices supply shortages, especially from its suppliers in Japan : NAND flash from Toshiba Corp., the system battery from Apple Japan Inc., etc.

Less is supplied at each prevailing price level, resulting in a shortage of iPad components ,thus, producers have to pay more for the limited supply.

in the unit cost of production as components are not easily substituted, hence, lower profit per unit.

the selling price of iPads to maximise profits.  

Samsung Galaxy Tab (a close substitute to iPad as both possess almost similar functions) XED for iPads with respect to the price of the Samsung Galaxy Tab will be of a high positive value. Pricing of iPads most likely be very responsive to that of the Samsung Galaxy Tab. Pricing decision of the iPad, is hence, affected by that of the Samsung Galaxy Tab. 

Case scenario: Emergence of new products

Producers :

Consumer:The Galaxy Tab (Android Powered tablet) possess

better features as compared to the iPad. E.g the Galaxy Tab has a better operating system as well as Adobe Flash, which iPad does not provide.

Apple could lower its prices of iPad to compete with Samsung. The fact that Apple is an internationally renowned brand allows it to bank on its worldwide reputation for publicity, via :e.g. iTunes

Consumers’ Income

•As the economy in Singapore grows by approximately 14.5%, the real income of Singaporeans increase.

•An in consumers‘ purchasing power will lead to an in the expenditure on luxury goods (such as iPad)

•This signals to Apple to its price and production

•Hence, consumers who are unwilling/unable to cast higher dollar votes will be rationed out of the market.

Consumers' tastes

Apple is better able to cater to the tastes of consumers due to its popularity.

For example, although Samsung Galaxy Tab is slimmer and lighter than the iPad, the myriad of applications available for Apple products far outweighs Android’s applications.

However, this may change as there will beemergence of new rival products in the tablet market, such as the hp touch pad and the Samsung Galaxy 10in Tab.

BIBLIOGRAPHY, CREDITS :

http://news.cnet.com/8301-31021_3-10450333-260.htmlhttp://www.bloomberg.com/news/2011-01-31/android-tablets-gain-on-ipad-in-fourth-quarter-researcher-says.htmlhttp://www.bloomberg.com/news/2010-11-18/rim-s-rival-to-ipad-wins-fans-as-corporate-customers-seek-secure-tablets.htmlhttp://news.bbc.co.uk/2/hi/8603599.stm

ECONS NOTES  

DONE BY:

ZAI

NICOLE

GLADYS

NING

DESMOND

11S417