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Economics Project

Economics Project. When did the iPad first originate?. Origins of iPad. 1983 – Apple Inc. started the idea of a Tablet PC – a portable personal computer with a touchscreen August, 1993 – First series of tablet released, known as the Newton MessagePad series

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Economics Project

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  1. Economics Project

  2. When did the iPad first originate?

  3. Origins of iPad • 1983 – Apple Inc. started the idea of a Tablet PC – a portable personal computer with a touchscreen • August, 1993 – First series of tablet released, known as the Newton MessagePad series • Steve Jobs developed the idea of a multitouch glass screen – applied on iPhone and iPods

  4. Origins of iPad 3rd April, 2010– the original iPad was released

  5. Origins of iPad Aug, 1993 June, 2007 Sep, 2007 3rd April, 2010 Newton MessagePad iPhone iPod Touch iPad

  6. A 16GB Wi-fiiPad by Apple sells for US$499 Why???

  7. How price is determined Price Mechanism Price of iPad

  8. 1.Complements • Apps (Applications) • Games • Entertainment • Books • Business • Education • Music • Lifestyle • Accessories • Cases • Speakers & Headphones • Keyboards & Docks • Chargers • Cables & Adapters

  9. 1.Complements

  10. 1.Complements Cross elasticity of demand (XED) of Apps and accessories with respect to the price of iPad is a large negative integer • They are close complements

  11. 2. Substitutes Dell Streak 7 Samsung Galaxy Tab Motorola Xoom

  12. 2. Substitutes

  13. 2. Substitutes Cross elasticity of demand (XED) of iPad with respect to the price of other tablet PCs is a positive integer • They are substitutes

  14. Factory(producer) Crude oil Final products consumer Shall I buy?

  15. Recent events in iPad market • Civil war in Libya(major crude oil producer) supply Price after before Crude oil Crude oil CIVIL WAR

  16. Price of iPad =D D: Total revenue (producer) Purchasing power (consumer)

  17. Purchasing power(consumer) Income elasticity of demand(YED) demand Luxury goods (iPad) income income elastic Consequence: quantity demanded of ipad will fall

  18. Recent events in iPad market • Earthquake and tsunami in Japan Disrupted Apple's component supply chain Supply Shortages of the iPad Price For the rest of this month and possibly longer

  19. Pricing strategy Cutting down the price of iPadleads to a more than proportionate increasein the quantity demanded for iPad and a rise in the total revenue gained. Loss in TR Gain in TR

  20. Substitutes HTC Flyer LG Optimus Pad Samsung Galaxy Tab GT-P1000 Competitions Motorola Xoom ViewsonicViewPad 7 HP touchpad

  21. 1. Price competitions Acer Android powered tablet iPad, Wi-Fi, 16G $299 $499

  22. $499 When price drops $299 Consumer’s view Price Qty demanded Consumers are more willing to purchase ipads. Quantity demand

  23. When price drops $299 $499 price Qty demanded Producers are willing to lower the price, in order to maximize TR Quantity demand Total revenue

  24. 2. Non-price competitions • Establishing uniqueness • Advertisement. • Product development. • Promotion activities. • Consumers’ taste

  25. advertisements http://www.youtube.com/watch?v=R41NNPBqRCk

  26. Product development bundling strategy with app. developers and provide various packages for consumers to make choices. games

  27. PopulariseiPad • Cater to consumers’ preferences • Establish product’s uniqueness 10 inches screen multi-core Graphics multi-tasking Apple iPad boasts an entire aluminum body

  28. Price for ipad • luxury goods is always income elastic, which means when there is an increase in real income, there will be a more than proportionate increase in the quantity demanded for ipad and vice versa. Hence, in this case, the quantity demanded of ipad will fall as the real income of consumers drop, ceteris paribus.

  29. Bibliography http://blog.appboy.com/wp-content/uploads/2010/06/ipad-app-store.jpg http://cache.gawkerassets.com/assets/images/4/2010/04/epicapps.jpg http://blog.appboy.com/wp-content/uploads/2010/05/ipad-apps.jpg http://images.tathya.net/wp-content/uploads/2010/11/Acer-android-tablet.jpg http://www.theproducersperspective.com/.a/6a00e54ef2e21b883301156ff915d3970c-pi http://en.wikipedia.org/wiki/IPad http://www.engadget.com/2010/01/26/the-apple-tablet-a-complete-history-supposedly/ http://ipad.org/origins-of-ipad/ http://www.pcworld.com/article/193746/apple_ipad_costs_260_to_build_isuppli_finds.html http://store.apple.com/us/browse/home/shop_ipad/family/ipad/select?mco=MjE0OTI0MDI http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action.html

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