Transcript Econs - 11S417econs

Economics Project!
Done by: Sheryl, Dawn, HuiXin, Eugenie and Sharron
When did ipad first originated?
-iPad is a world renown product that was first
launched by Apple on 3 April, 2010 in USA.
- Its market price then was US $500 - $700.
I would want
something
cheaper!
How is price of ipad determinded?
- Its demand, the price of other similar products and
its competitors , etc.
What are some of the related /associated products related to
the iPad? How are these products related to the iPad?
• Icade.
• When iPad is plugged in, it allows the
iPad to be played like a mini arcade
game.
• Ipad mixer.
• Allows you to play music that you most
proud of, even to the level of
professional DJ.
(Android powered tablets)
• Initially, Consumers are willing to purchase Ipads at
high prices. However, due to advancements of
technology, similar products are introduced at low
prices.(Android powered tablets).
• Consumers will choose Android powered tablets over
Apple’s iPad as a cheaper alternative (substitutes to
iPad) .
• If prices of the iPad stays the same, in the long
run, demand for iPad will decrease as more
consumers switch to Android power tablets.
(Pricing)
• Thus, targeting consumers who have purchased
Apple products through newletters (via email),
they can help to spread the word about the Ipad
to attract more people. (Marketing)
Boasting economy in 2010
• Prosperous economy in 2010 will result
in high purchasing power of the
consumers, hence,demand of ipad will
increase,since ipad is a normal good. (
Pricing decision )
•
As a consumer, i have to decide if I am
willing and able to pay for that good
(marketing decision )
I don’t
have the
money..
Tsunami (POV)
• NAND flash RAM chips used in iPads are from
Toshiba (Tokyo).
• Consumer’s purchasing power will decrease and
demand for iPad decreases. This results in
downwards pressure, and price of iPad decreases.
=
=
Tsunami (POV)
• The consumer’s purchasing power will
decrease and their demand for ipad
decreases.
=
•
This results in downwards pressure, and
price of ipad decreases.
• Decrease my quantity supplied as less
revenue is collected from the sale of these
ipad. (Marketing decision)
Tsunami (POV)
• Price Elasticity of supply measures the degree
of responsiveness of quantity supplied to a
change in the price of good, ceteris paribus.
• With a high number of substitutes, ipad is
price elastic. Therefore, when the quantity
supplied decreases by x%, the fall in price
would be lower than x%. (Pricing decision)
I should run to
tell daddy how
much he
should
produce.
iPad Apps (POV)
• The iPad may not be able to secure as much
consumers as the iPod touch and iPhone.
• Hence, producers are pricing the applications
for the iPad higher than those for iPhone and
iPod touch.
•
Producers are improving on them too, making
them more attractive on a larger screen.
• This change in the price of related goods
(iPad Apps), would adversely affect the
supply of iPad, as less consumers are now
willing to pay more for same applications for
iPhone and iPod touch.
• Thus, producers have to create applications
which are worth of its’ price.
Credits!
• http://www.bloomberg.com/news/2011-01-31/android-tablets-gain-onipad-in-fourth-quarter-researcher-says.html
• http://www.apple.com/ipad/features/
• http://news.bbc.co.uk/2/hi/8590300.stm
• http://www.google.com