Transcript Increase in Disposable income

Recent developments and how
it affects Apple’s
pricing, output and marketing
decision for iPads
Increase in disposable income
From: http://www.singstat.gov.sg/stats/themes/people/hist/hhinc1.pdf
Impact on Apple’s pricing,
output & marketing decision
iPad is considered as a form of luxury good
iPads would have a higher income
elasticity of demand (YED> 1).
When disposable income
more than proportionate
luxury goods
To maximize total revenue,
in demand
Output strategy
1. Incease total output production
Marketing decision
2. Collaborate with other luxury brands to
sell limited edition series of iPads
Changes in
Taste & Preference of Consumers
Consumers are becoming More IT savvy and
More choosy with the emergence of new computer tablet products
as they now have more alternatives
iPads have a unique design which makes it
different as compared to other tablets.
It weighs only 601g and
measures (9.50" x 7.31" ).
Its lightweight and compact design allows
users to be able to use the product more
conveniently.
9.50"
(241.2 mm)
7.31"
(185.7 mm)
Its attractive design further improves iPad’s
marketing and popularity to consumers.
Apple also did product development
to suit the changes in taste & preferences of consumers
Development of iPad 2, which have various new features.
Multi-Touch
Instant On
Thinner by 33%,
Lighter by 15%
iOS 4.
The world’s most
advanced mobile
operating system.
Apple is focused on bringing
consumer satisfaction
100
80
Improvement in
consumer
satisfaction till
2010
60
40
Consumer
satisfaction in
1998
20
Apple’s product
development and
innovations
increased consumer
satisfaction by
24.6%
0
Apple
Dell
HP
Compaq
AppleCare
Protection
Plan for iPads
Free iPad
engraving
Efficient
customer
support