Economics Project

The iPad

Contents• Project A• When did the iPad first originated? • How is the price of iPad determined?• What are some of the related/associated

products for the iPad? How are these products related to the iPad?

• Project B• Discuss how recent developments would

affect your marketing and pricing decisions for the iPad.Consumer’s point of view

Producer’s point of view

When did the iPad first originated?

3 April 2010

How is the price of the iPad determined?

USD 499 to USD

829 300,000 units on its

debut

“focus on how the product would make

its proud owner

happier”

Samsung Galaxy Tab

Dell Streak

•The deaths of Japanese results in the reduction in size of working population.

•Lesser people are willing and able to pay for the iPad

•Fall in demand for iPads

As producers,

Apple should

lower the price of iPads in order to increase its total

revenue.

The demand for iPads can

be seen as relatively

price elastic

since iPads are luxury goods that

can be easily

forgone.

Also, people cast lesser dollar votes for luxury

goods, especially in

times of crisis. Thus, a

fall in the price will lead to a

more than proportionate

increase in quantity

demanded.

• The natural disaster will cause households to allocate a greater proportion of their income on basic necessities instead of luxury goods like the iPad.

• Hence demand for iPads would have fallen.

•Due to close substitutes of iPad, more people switch to the alternative (Galaxy Tab) when the price of iPad rises.

•This would induce a decrease in the demand for iPads.

•Producers would decrease the price of iPad in order to increase the quantity demanded for iPad by making the iPad more affordable.

•In this way, their total revenue increases.

SGD 998 SGD 728

In conclusion…

THANK YOU!