Gulliver’s travel(ipad)

Done by: Shaza Charlene Goh Wei Lun Shi Yu 11s502 Gulliver’s travel(ipad)

PROJECT AWhen did iPad first originated? • First unveiled in April 2010 by the CEO of Apple, Steve Jobs. • Developed by Apple and uses the same operating system as the iphone and ipod touch.

PROJECT AHow is the price of the iPad determined? • Appeal to consumers • In a market where more advanced products are continuously introduced, producers aim to attract the consumers’ interest. • Thus, if the product is in demand, the price of the iPad can be increased to maximize profits as consumers are willing and able to purchase it.

PROJECT AHow is the price of the iPad determined? http://planet-iphones.com/2010/12/16/corporate-usage-of-tablet-devices-ipad-rules/

PROJECT AHow is the price of the iPad determined? • Production cost of iPad • The basic version of an iPad costs about $260 to manufacture, according to the research firm iSuppli. • The higher the cost of production, the higher the price of the iPad, so as to cover increased costs of production. • However, in a competitive market, producers aim to produce at the lowest possible costs as it would in turn allow them to lower the prices of their products. Hence winning the spending votes of consumers.

PROJECT AHow is the price of the iPad determined • Prices of substitutes • Consumers aim to maximise their satisfaction with their limited incomes. • Hence when the price of substitutes are lower that the iPad, the demand of iPad would decrease. • Therefore in order to overcome competition(to increase profits), the price will be lowered.

DID YOU KNOW??? Prices of iPad varies in different countries!! WHY?? This is due to taxes that in some countries must be included in advertisements or cost quotes.

DID YOU KNOW??? Generally, iPad is the CHEAPEST in US!!

PROJECT ARelated/associated products for iPad The iPad dock can be attached to what looks like one of the normal keyboards on the front of it which transforms the touchscreen tablet into a pseudo laptop.

PROJECT ARelated/associated products for iPad • The iPad batter case It is not only a charger but also protects the iPad from short circuits, over-current, over-charging, and over-discharging.

PROJECT BCONSUMER’S POINT OF VIEW Appeal found in the iPad. Consumers are very willing to purchase the iPad, as judged by the positive Response to the previous “iterations” of Apple's touchscreen technology, e.g the iPod Touch/iPhone. Never before had there been a tablet that worked so wonderfully. (Comparison to the tablet PC's released in the 2001 era that Flopped in sales due to bad functionality) Attractive user interface, reliable and intuitive operating system with Support for a plethora of applications; the iPad's apps are applicable To many everyday situations. These reasons make the iPad more marketable hence it could be sold at a higher price.

PROJECT BCONSUMER’S POINT OF VIEW Consumers may not want an iPad Consumers may see the appeal in tablets produced by other established Brands e.g. Motorola Xoom, Samsung Galaxy Tab, HTC Flyer. These tablets are good in their own right and consumers may pick them over The iPad. Consumers may feel that the iPad is unnecessary; they may already own an Iphone/iPod touch and may see no use in getting what is an essentially Supersized version of a product they already possess. Consumers may be hesitant towards buying an iPad; Apple has the tendency To release newer, upgraded versions of their products within 6 months-1 year, Hence consumers may hold out till the next version.

PROJECT Bproducer’s point of view: • Changes in price of related goods • The emergence of similar tablets gives consumers more choice ,leading to a drop in profits for producers as they face more competition. • Hence, producers should follow closely with the changes in prices of other tablets. • For example, when the price of the Samsung Galaxy decreases, the demand for iPad would drop. Thus it is necessary for producers to adjust the price of iPad with reference to substitutes.

PROJECT Bproducer’s point of view: • Launch of iPad2(more advanced products under the same firm) • The launch of iPad2 at the same price as the iPad will affect iPad sales. • It has enhanced functions and thus more worth it since consumers’ objective is to maximize their satisfaction with their limited income. • Hence producers observing such a trend should halt production for the first generation iPad and ram up productions of iPad2 in order to satisfy the demands of consumers.

PROJECT Bproducer’s point of view: • Launch of iPad2(more advanced products under the same firm) • Since the price of the iPad2 = iPad and is a better version, consumers will want to buy the iPad2 • Demand for iPad will fall, demand for iPad2 will increase • Drop in demand for iPad, leftward shift in demand curve(ceterius paribus) • Quantity supplied > quantity demanded • Downward pressure on equilibrium price due to surplus, price drops

Did you know?? • Apple’s (scheming)marketing strategy • Controlled media leaks • Every time a new Apple device is on the verge of launch, there will be lots of rumors and speculations from third party sources who claim to be 'in the know' regarding the product. • This would successfully create buzz for the products and also allows Apple to study the reaction regarding price-points. Source: http://www.iphonehacks.com/2010/01/apples-strategy-to-generate-buzz-controlled-media-leaks.html

Thank You!

Gulliver’s travel(ipad)