Economics Web Quest Project Presentation Group Members: Sherwinder, Darren, Vivek and Nicholas

iPad Here are some attributes of the iPad  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

Project A - When did the iPad first originate?  Some form of tablet computers even existed in the 19 th century  E.g. 1888: U.S. Patent granted to Elisha Gray on electrical stylus device for capturing handwriting U.S. PatentElisha GrayU.S. PatentElisha Gray  Tablet PCs seem to be the hype and the market is doing very well  Apple profits increased rapidly after release of iPhones in 2007  iPad release was rumoured in late 2009  Announced in Jan  1 st released in U.S.A. on April 2010

Project A - How is the price of the iPad determined?  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.  The lowest price of iPad at release is $499 which is lower than a few tablet PCs, to increase quantity demanded and profit of iPad.  The iPad comes in different versions depending on the memory and whether has it has 3G services.  Price ranges from $499 to $829.

Project A - What are related products to iPad? (substitutes)  Other tablet PCs like galaxy tab  Acts as substitutes to the iPad, satisfy same wants  If substitutes like the galaxy tab is cheaper, it would affect iPad market  People choose cheaper substitute, sales/demand of iPad falls  Substitutes like the Amazon kindle are weaker  Kindle’s main function is as a e-book reader.  They have lesser functions/attributes than iPad  Consumers who have high expectations will still consume iPad even though iPad is more expensive

Substitutes Samsung galaxy tab Amazon Kindle

Project A - What are related products to iPad? (complements)  iPad covers/keyboards  They act as complements to the iPad  Most people who buy iPads would purchase cover too.  If price of iPad decrease, the quantity demanded of iPad increases too as more people are rationed into the market  and to "decorate" their tablet PC fashionable iPad covers, the demand of iPad covers increases 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!!! 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……  In the past 5 years, improvements have been made to laptops/desktops.  For example, development of Windows 7 and Windows Vista.  Laptops/Desktops are substitutes to the iPad as they both can surf the net. Rivals to tablet PC market.  However, instead of demand of laptops increasing, sales have fallen.  Tablet PCs like the iPad have better attributes than laptops, laptops becoming weaker subs, consumers choose tablet PCs  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……  Technology is vastly improving in the 21 st century  Invention of better machinery and processor cards  Apple designed A4 card for iPad a package on package (PoP) system-on-a- chip (SoC) package on packagesystem-on-a- chippackage on packagesystem-on-a- chip  which made iPad have even 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 - e.g. Samsung galaxy tab

Economic Development In the consumer’s point of view……  iPad was released on April 2010 in the U.S.A.  At that period GDP of U.S.A. was billion dollars and there is a generally increasing trend.

Economic Development In the consumer’s point of view……  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……  Other producers begin to manufacture substitutes to rival the iPad  However, those producers will manufacture the similar goods with a lower cost of production. (to achieve productive efficiency)  The selling price 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 for-tablet-computers-gartner for-tablet-computers-gartner

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