Transcript Economics Web Quest

Economics Web Quest
Project Presentation
Group Members: Sherwinder, Darren,
Vivek and Nicholas
iPad
Here are some attributes of the iPad
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Has wifi and 3G data roaming
Latest operating system IOS 4.3
Rather light for a tablet PC (680g)
Long battery life (1 month standby)
Touch-screen
Can be used as a e-book reader
Can be used as a gaming device
A4 card, fast internet surfing speed
When did the iPad originate?
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Tablet PCs seem to be the hype and the market is doing very well
Apple re-entered market of mobile computing in 2007.
iPad officially announced in Jan 27 2010
1st released in U.S.A. on April 2010
How is the price of the iPad
determined?
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Analysing demand/supply of tablet PCs
For example, if demand is high, price of iPad would be high too.
This is due to the consumers casting higher dollar votes to ensure they
obtain the iPad.
Signal to producers to produce more, price of iPad can be higher.
Those can’t afford rationed out.
Those who can afford pay at equilibrium price ($499 - $829)
Price range due to some iPad having more memory/3G.
What are related products to iPad?
(Substitutes)
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Other tablet PCs like galaxy tab
Acts as substitutes to the iPad, satisfy same wants
Price of galaxy tab
Qty DD of galaxy tab
Demand of iPad
Substitutes like the Amazon kindle are weaker
Kindle’s main function is as a e-book reader
lesser functions/attributes than iPad
Consumers who have high expectations will choose iPad
Substitutes
Samsung galaxy tab
Amazon Kindle
What are related products to iPad?
(Complements)
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iPad covers/keyboards
Most people who buy iPads would purchase cover too.
E.g. if price of iPad
the quantity demanded
as more people are
rationed into the market
and to "decorate" their iPad with fashionable iPad covers, the demand of
iPad covers
too.
Complements
iPad covers
iPad keyboard
Project B
Over the years recent developments have
affected the marketing and pricing decisions
of Apple and its iPad!!!
Producer’s POV
Development of Computers
Technology advancement
Development of Computers
In the producers’ point of view……
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In the past 5 years, improvements have been made to laptops/desktops.
Development of Windows 7 and Windows Vista.
Laptops/Desktops are substitutes to the iPad as they both can surf the net.
However, instead of demand of laptops increasing, sales have fallen.
Tablet PCs like the iPad have better attributes than laptops and become
weaker subs. Consumers choose iPad.
Demand of tablet PCs still
Consumers cast higher dollar votes to obtain iPad, prices
Apple can continue to produce more iPads at high prices to maximise
profits.
Development of Technology
In the producers point of view……
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Technology is vastly improving in the 21st century
Invention of Apple designed A4 card for iPad a package on package (PoP)
system-on-a-chip (SoC)
make iPad have more attributes such as faster internet surfing speed.
Developments in technology would mean better quality resources
Increased efficiency in manufacturing iPads, leading to lower cost of
production per unit of iPad. (up profits)
Since firms aim to maximise profits, Apple should aim to supply more
iPads in the future. (increase supply)
Consumer’s POV
Economic development
Cheaper Substitutes
- e.g. Samsung galaxy tab
Economic Development
In the consumer’s point of view……
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iPad was released on April 2010 in the U.S.A.
At that period GDP of U.S.A. was 14400 billion dollars and there is a
generally increasing trend.
Economic Development
In the consumer’s point of view……
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Consumers have higher income/spending power
They go for normal goods/luxuries
Since iPad is a luxury, it is income elastic (positive and high YED)
income will lead more than proportionate
in demand
Consumers willing and able to pay, cast higher dollar votes to obtain it
Signal to producers to increase quantity supplied
iPads can be sold at higher price to max profit of Apple
Development of Cheaper Substitutes
In the consumer’s point of view……
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Other producers begin to manufacture substitutes to rival the iPad
The selling price some of these substitutes is cheaper
E.g. Samsung Galaxy Tab is about $200 cheaper than iPad
Consumers choose to consume cheaper substitute (rationally) as they
both satisfy the same need
qty demanded of Galaxy Tab
demand of iPad
Thus, apple needs to have better advertisements/promotions to increase
sales of iPad or lower price of iPad in future (to max profits)
Bibliography
http://en.wikipedia.org/wiki/History_of_tablet_computers
http://www.forecasts.org/gdp.htm
http://news.cnet.com/8301-17938_105-10443186-1.html
http://en.wikipedia.org/wiki/Apple_A4
http://mobility.cbronline.com/news/pc-growth-hurt-by-rising-demand
for-tablet-computers-gartner-040311