Done by: Yanyi, Amanda, Qingru, Anna,

Vanessa Soh, Kamy

11S2

01

ContentsI. OriginII. How is the price determinedIII. Related goods - Compliments - SubstitutesIV. Recent developments – How they affect

marketing and pricing decisions - Consumer’s point of view - Producer’s point of view

 Apple started the iPad on April 23, 2008.

Apple began developing the iPad before the iPhone, but temporarily shelved the effort upon realizing that its ideas would work just as well as a mobile phone.

Release datesUnited States: April 3, 2010International: May 28, 2010

When did the iPad originate?

However, the original idea of the iPad can be said to have originated from 38 years ago when

a man named Alan Kay published a paper detailing a device similar to Apple’s iPad, which

he called “Dynabook.” He made a number of predictions, many of which are true of the iPad

that Apple released.

DID YOU KNOW?

How the price of iPad is determined

1. Cost of production This includes the individual cost of each component as

well as the cost of labour needed.

2. Demand by consumers in the market. When the demand increases, higher dollar votes are

cast for the iPad, causing prices to be increased.

Related goods - Compliments

Starter Series iPad with Magic ArmIt enables users to create a straight-read teleprompter by slotting the iPad into a mount.

iPad battery caseIt is not only a charger but also as a protector for the iPadPrevents short circuit, over-current, over-charging, and over-discharging

iCadeOnce the iPad is slotted into the shelf, it looks just like a game machine in an arcade.

Related goods - Substitutes

Samsung Galaxy Tab7-inch slate that is smaller and lighter than the iPad. It has the same speed processor but twice the RAM. It also has 2 built-in cameras.

Kindle Portable e-book reader that uses wireless connectivity to enable users to shop for, download, browse, and read e-books, newspapers, magazines, blogs, and other digital media in some countries.

How will recent developments affect the marketing and pricing decisions for the iPad?

1. Consumer’s point of view: Android tablets Food inflation and increase in oil prices

2. Producer’s point of view: Shortage in supply of components required Improvement in iPad shipping time

1a. Android tablets (negative impact)

o Consumers will compare the functions of Android tablets to iPad before buying

o Some might decide to buy the Android instead less consumers for the iPad

o Demand for iPad will decrease lesser profits

o E.g Samsung Galaxy Tab: (Figures are for Korea)

• Sold 250 000 units as of end of last year,

since November 12, 2010

• Compared to iPad’s under 100 000 units

since November 30, 2010

• Sales/demand of iPad is affected as the

people have more choices

1b. Food inflation and increase in oil prices(negative impact)

o Disposable income will be reduced significantly

o Consumers will be more careful with their spending (differentiating

needs from wants)

oThose not willing or able to pay for iPad will be rationed out of the

market

o Also, iPad 2 will be released soon

o Consumers would rather wait for that,

given the newer and better features

2a. Shortage of supply of components required (negative impact)

o Shortage of components shortage of iPads

o Units of iPad produced cannot meet the demand

o Quantity supplied cannot meet quantity demanded

o Supposed to result in upward pressure on price, but the

price of iPad is fixed

o Will result in the recognition of the brand Apple instead

2b. Improvement in iPad shipping time(positive impact)

o Reduced from 10 days, to 3-5 days, to 1-3 days

o Company is able to meet the demand for iPad more

efficiently

o More profits can be earned

Bibliography (1)

http://alexw.me/2011/01/ipad-simulator-in-html-and-js/http://sg.yfittopostblog.com/tag/ipad/ http://www.simplehelp.net/2010/04/03/how-to-remove-the-sent-from-my-ipad-signature-from-outgoing-email-on-your-ipad/http://chris.pirillo.com/when-was-the-ipad-really-invented/http://www.flickr.com/photos/alex_hopkins/4404319941/sizes/o/in/photostream/http://en.wikipedia.org/wiki/IPadhttp://www.bbc.co.uk/blogs/thereporters/rorycellanjones/2010/08/kindle_or_ipad_-_which_will_ch.htmlhttp://www.fonearena.com/blog/22543/samsung-galaxy-tab-coming-to-india.htmlhttp://en.wikipedia.org/wiki/Amazon_Kindlehttp://en.wikipedia.org/wiki/IPadhttp://www.reuters.com/article/2010/07/23/lgdisplay-production-idUSTOE66M00620100723http://www.telecomskorea.com/market-10004.htmlhttp://phandroid.com/2010/01/29/android-tablets-vs-apple-ipad-comparisonreview/http://www.pcworld.com/zoom?id=204779&page=1&zoomIdx=1http://www.padgadget.com/2010/08/23/improved-ipad-shipping-times-and-apps-market-statistics/

Bibliography (2)

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