Done by: Yanyi, Amanda, Qingru, Anna, Vanessa Soh, Kamy 1 1 S 2 0 1.

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Done by: Yanyi, Amanda, Qingru, Anna, Vanessa Soh, Kamy 1 1 S 2 0 1

How will recent developments affect the marketing and pricing decisions for the iPad? 1. Consumer’s point of view: Android tablets Food inflation and increase in oil prices 2. Producer’s point of view: Shortage in supply of components required Improvement in iPad shipping time

1a. Android tablets (negative impact) o Consumers will compare the functions of Android tablets to iPad before buying o Some might decide to buy the Android instead  less consumers for the iPad o Demand for iPad will decrease  lesser profits o E.g Samsung Galaxy Tab: (Figures are for Korea) Sold units as of end of last year, since November 12, 2010 Compared to iPad’s under units since November 30, 2010 Sales/demand of iPad is affected as the people have more choices

1b. Food inflation and increase in oil prices (negative impact) o Disposable income will be reduced significantly o Consumers will be more careful with their spending (differentiating needs from wants) o Those not willing or able to pay for iPad will be rationed out of the market o Also, iPad 2 will be released soon o Consumers would rather wait for that, given the newer and better features

2a. Shortage of supply of components required (negative impact) o Shortage of components  shortage of iPads o Units of iPad produced cannot meet the demand o Quantity supplied cannot meet quantity demanded o Supposed to result in upward pressure on price, but the price of iPad is fixed o Will result in the recognition of the brand Apple instead

2b. Improvement in iPad shipping time (positive impact) o Reduced from 10 days, to 3-5 days, to 1-3 days o Company is able to meet the demand for iPad more efficiently o More profits can be earned

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