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 signalling

and rationing function-Consumers signal changes in demand through prices they are willing and able to pay. -Producers signal changes in supply through prices they are willing to accept.

How is the price of iPad

determined?- Those who are unwilling or unable to pay will be rationed out of the market.

1. Through signalling

and rationing function

How is the price of iPad

determined?2. Apple's will to sell below cost. (in order to gain market share) 3. Apple's confidence in its success.

CoverStan

dKeyboard

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 POVAndriod 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 sellersAn 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