IPAD ECONOMICS MEMBERS Viola Shermayne Tsui Yan Audrey Sheana Pei Yi.
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Transcript of IPAD ECONOMICS MEMBERS Viola Shermayne Tsui Yan Audrey Sheana Pei Yi.
IPAD
ECONOMICS
MEMBERS
Viola
Sher
mayne
Tsui
Yan
Audr
ey
Shea
na
Pei Yi
PROJECT A
V
IOLA-When did the iPad first originated?
S
HERMAYNE-How is the price of the iPad determined?
T
SUI YAN-What are the related/associated products of the iPad? -How are these products related to iPad?
ORIGIN
FEATURES
HOW IS THE PRICE OF THE IPAD DETERMINED ?
iPAD MODEL PRICE
16 GB Wi-Fi only USD 499
Wi-fi+3G USD 629
32 GB Wi-Fi only USD 599
Wi-fi+3G USD 729
64 GB Wi-Fi only USD 699
Wi-fi+3G USD 829
Selling Price:
HOW IS THE PRICE OF THE IPAD DETERMINED
iPAD MODEL PRICE
16GB Wi-Fi only USD 229.35
Wi-Fi + 3G USD 257.65
32GB Wi-Fi Only USD 258.85
Wi-Fi + 3G USD 287.15
64GB Wi-Fi Only USD 317.85
Wi-Fi+3G USD 346.15
Estimated Cost Price:
HOW IS THE PRICE OF THE IPAD DETERMINED ?
A
pple makes a significant amount of profits-Why is Apple able to get us to pay such a high cost?
We are willing and able to pay that sum of money for iPads.
This has led to a HIGH DEMAND which induces them to increase their supply.
However Apple requires higher prices to produce more in the short run
thus enabling Apple increase its selling price. In conclusion, the cost of an iPad is
basically set by Apple to maximize profits as seen from the tables.
WHAT ARE THE RELATED PRODUCTS OF THE IPAD?
Substitutes
Items which are have uses similar to that of the
iPad
Complements
Items which require the presence of the iPad for
usage
IPAD SUBSTITUTE: NOTION INK
• First to have Pixel Qi screen integration
• First example of the huge revolution that comes with ARM Cortex A9 Power and a Pixel Qi.
IPAD SUBSTITUTE: MICROSOFT COURIER
• Match Apple when it comes to user interface innovations
• Folding dual screen that is more like a pen and touch-controlled digital journal and eReader at the same time
IPAD SUBSTITUTE: HP SLATE
• Features include 10-inch multi-touch screen, Windows 7, supports Flash video playback, Wi-Fi Bluetooth
IPAD SUBSTITUTE: THE ICD ULTRA
• 7-inch resistive single-touch display, 256MB of RAM and 512MB of ROM, 4GB internal flash memory and 3G option.
IPAD COMPLEMENT: ZAGGMATE IPAD CASE
• Features a hinge stand, and optional wireless Bluetooth keyboard for easy typing
• QWERTY keyboard offers special function keys for music control, volume control
IPAD COMPLEMENT: IPAD KEYBOARD
• Combines a dock for charging your iPad with a full-size keyboard, which includes special keys that activate iPad features.
PROJECT B
Discuss how recent developments would affect your marketing
and pricing decisions for the iPad.
FACTORS AFFECTING DECISIONS
Producer’s Point of View
Price
Taste
Price
Cross Elastici
ty of Deman
d
Demand
Consumer’s Point of View
FACTORS AFFECTING DECISIONS
Producer’s Point of View
Price
Taste
Price
Cross Elastici
ty of Deman
d
Demand
Consumer’s Point of View
CONSUMER’S POV: PRICE
M
ore substitutes
i
Pad becomes increasingly price elastic
Q
ty dd > proportionate amount
E
arn total revenue
POV: Point of View
FACTORS AFFECTING DECISIONS
Producer’s Point of View
Price
Taste
Price
Cross Elastici
ty of Deman
d
Demand
Consumer’s Point of View
L
ighter
W
ider variety of applications
W
atch movies
S
urf the net
E
book
POV: Point of View
CONSUMER’S POV: TASTE
Demand for substitutes,
Demand for iPad,
In price equilibrium,
Qty dd
FACTORS AFFECTING DECISIONS
Producer’s Point of View
Price
Taste
Price
Cross Elastici
ty of Deman
d
Demand
Consumer’s Point of View
POV: Point of View
PRODUCER’S POV: PRICE
Change in price = Change in position ALONG
supply curve
price of iPads, qty dd for iPad,
profits
rational behaviour*Central Economic
Problem*Firms’ aim:
Maximise Profits
FACTORS AFFECTING DECISIONS
Producer’s Point of View
Price
Taste
Price
Cross Elastici
ty of Deman
d
Demand
Consumer’s Point of View
POV: Point of View
PRODUCER’S POV: XED
X
ED is the Cross Elasticity of Demand.
POV: Point of View
Non-price competitive alternatives
Complementary sales
Providing more details of the iPad
Demand , Profits
FACTORS AFFECTING DECISIONS
Producer’s Point of View
Price
Taste
Price
Cross Elastici
ty of Deman
d
Demand
Consumer’s Point of View
POV: Point of View
PRODUCER’S POV: DEMAND
S
ubstitutes , Choices
profits
P
rofit motivated firms can do a better job.
POV: Point of View
BIBILOGRAPHY
h
ttp://www.ipad-answers.com/is-there-any-substitute-for-the-ipad/
h
ttp://www.netbooknews.com/3065/top-5-ipad-alternatives-do-you-think-they-stand-up-to-
the-ipad/
h
ttp://www.mydigitallife.info/2010/11/15/zaggmate-ipad-case-with-integrated-wireless-
bluetooth-keyboard/
h
ttp://www.videoipadconvertermac.com/ipad-accessories/ipad-keybaord.html
http://www.buzzle.com/articles/ipad-cost.html
BIBILOGRAPHY
http
://www.ipad-answers.com/is-there-any-substitute-for-the-ipad/
http
://www.redmondpie.com/ipad-vs-galaxy-tab-comparison/
http
://www.slashgear.com/ipad-vs-galaxy-tab-16102821/
http
://www.apple.com/ipad/
http
://www.diffen.com/difference/Samsung_Galaxy_Tab_vs_iPad
http
://www.msnbc.msn.com/id/40094205/ns/technology_and_science-wireless/
http
://www.bloomberg.com/news/2010-11-18/rim-s-rival-to-ipad-wins-fans-as-corporate-customers-seek-secure-
tablets.html
http
://www.bloomberg.com/news/2011-01-31/android-tablets-gain-on-ipad-in-fourth-quarter-researcher-says.html
THE END