Demand and Supply WEBQUEST Demand and Supply WEBQUEST Group
4
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Project A
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The iPad originated on the 3rd of April 2010.
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another exclusive product of Apple gained enough publicity and
consumer awareness a high demand
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we have to account for the amount of money used in the
production of the iPad. the internal processo rs etc. The
casing
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Non-AppleApple
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iPad Cases
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iPad Docks
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iPad Camera Connection Kit
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iPad keyboard
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-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.
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Samsung Galaxy TabKindle
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Such goods will decrease the demand for iPad as they are
substitute goods.
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Question: Discuss how recent developments would affect your
marketing and pricing decisions for the iPad. Focus on two factor
from the consumers point of view and two from the producers point
of view.
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Recent developments Introduction of iPad substitutes Many
countries recovering from recession Short supply of iPad
touch-screens Expansion of iPad market into China
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To the consumers...
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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. D1 D2 P1 P2 Android
(substitiute) iPad Price Quantity Price
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Hence, price of iPad should decrease to ensure price is
comparable to substitutes. More advertisements should be used to
promote iPad.
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o Countries like Singapore have experienced economic growth
higher income levels o Makes iPad more affordable due to higher
income o Producers should lower prices to attract even more as a
lower price complements the rise in income of consumers
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To the producers...
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o iPads touch screen has been in short supply o Price of touch
screen has risen o Production cost of iPad increases o Hence iPad
cost must be increased so as to maximise profits
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o Apples 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
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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.
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http://news.cnet.com/8301-31021_3-10450333-260.html
http://www.bloomberg.com/news/2011-01-31/android-tablets-gain-on-ipad-
in-fourth-quarter-researcher-says.html
http://www.bloomberg.com/news/2010-11-18/rim-s-rival-to-ipad-wins-fans-
as-corporate-customers-seek-secure-tablets.html
http://news.bbc.co.uk/2/hi/8603599.stm
http://www.macworld.com/article/153145/2010/08/ipad_china.html
http://www.bbc.co.uk/newsbeat/11863568
http://news.bbc.co.uk/2/hi/8590300.stm
http://www.bbc.co.uk/blogs/thereporters/rorycellanjones/2010/08/kindle_or
_ipad_-_which_will_ch.html
http://en.huanqiu.com/business/industries/2011-01/618170.html
http://www.theipadguide.com/content/ipad-production-problems-
samsung-joins-lg/7174625 With thanks to,