Demand and Supply

WEBQUEST

The market for the iPadGroup 4

Project A

When did the first iPad originated?

The iPad originated on the 3rd of April 2010.

How is the price of the iPad determined?

another exclusive product of Apple

gained enough publicity and

consumer awareness

a high demand

a relatively high price

Moreover,• we have to account for the amount of money used in the

production of the iPad.

the internal process

ors

etc.The casing

What are some of the related/associated products of the iPad?

Non-AppleApple

How are these products related to the iPad?

related/associated products iPad Cases

iPad Docks

related/associated products

related/associated products iPad Camera Connection Kit

related/associated products

iPad keyboard

How are these products related to the iPad?- Convenience;- aesthetic appellation;all to ensure our iPad experience is not shortchanged for the price we are paying;

The demand of all these products is a derived demand in part from the demand for iPad.

Samsung Galaxy Tab Kindle

How are these products related to the iPad?

Such goods will decrease the demand for iPad as they are substitute goods.

Question:Discuss how recent developments would affect your marketing and pricing decisions for the iPad.

Focus on two factor from the consumer’s point of view and two from the producer’s point of view.

Project B:

Recent developments• Introduction of iPad substitutes• Many countries recovering from recession• Short supply of iPad touch-screens• Expansion of iPad market into China

Project B:

To the consumers...

o Substitutes likely to cause a fall in demand for iPad.o When there is a rise in substitutes, such as Android tablets, the

quantity demanded for iPad will decrease.

Introduction of substitutes

D1

D2

P1

P2

Android (substitiute) iPad

Price

Quantity

Quantity

Price

Hence, price of iPad should decrease to ensure price is comparable to substitutes. More advertisements should be used to promote iPad.

o Countries like Singapore have experienced economic growth higher income levels

o Makes iPad more affordable due to higher incomeo Producers should lower prices to attract even more as a lower price

complements the rise in income of consumers

Rising income levels

To the producers...

o iPad’s touch screen has been in short supplyo Price of touch screen has risen o Production cost of iPad increaseso Hence iPad cost must be increased so as to maximise profits

Decrease in touch screen supply

o Apple’s iPad got approval to be sold in China in August last year

o Market expansion hence increase in supply of iPad

o Apple should increase its prices so as to maximize its profits due to an increase in size of the consumer market

Expansion of Market into China

Producers are should raise their prices for the iPad so as reach a better market equilibrium price.

This is seen from the short supply of the 9.7 LED touch screens of the iPad, The price of touch screens , which will lead to unit cost of production of the iPad.

Hence in order to increase profits, producers would raise the price of the iPad.

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.stmhttp://www.macworld.com/article/153145/2010/08/ipad_china.htmlhttp://www.bbc.co.uk/newsbeat/11863568http://news.bbc.co.uk/2/hi/8590300.stmhttp://www.bbc.co.uk/blogs/thereporters/rorycellanjones/2010/08/kindle_or_ipad_-_which_will_ch.htmlhttp://en.huanqiu.com/business/industries/2011-01/618170.htmlhttp://www.theipadguide.com/content/ipad-production-problems-samsung-joins-lg/7174625

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