2.  Crystal  Yong Siang  Saranya  Adliya  Zi Yan  Wee Ping

3.  Discuss how recent developments would affect your marketing and pricing decisions for the iPad. You should concentrate on the four main factors,2 from the consumer point of view and 2 from the producer’s point of view. Use the economic tools to support your answer.

4.  Android Tablets gain on Apple iPad in fourth quarter  iPad clears government hurdle in china  More than 300.000 iPad sold on launch date in US  Kindle or iPad: which will change reading  Acer seeking piece of iPad market with introduction of 3 Tablet devices  Apple slashes original iPad price to us$399 (wi-fi enabled with 16GB memory space)

5. Price factors Affordability Value for money Non-price factors Convenience Features Promotion

6.  The law of demand starts that the higher the price of the good, the lower the quantity demanded, ceteris paribus

7. Motorola Xoom 36GB Price: US$800 iPad 16GB Price:US$399 Samsung Galaxy Tab Price: US$600 Dell Streak 10 Price: US$550

8.  Popularity and good reputation of Apple products mean that iPad will be in high demand  Loyal Apple customers do not mind paying a premium for quality iPad  Wide availability of complimentary complements for iPad in the market  Multimedia entertainment features are appealing to customers  Recent launch of iPad 2 reduced price of iPad, thus increasing its demand

9. Thickness of iPad: 13.4mm (slimmer than counterparts)  tendency to seek slimmer tablet PC for convenient sake 65,000 Apps specially suited for iPad resolution Large display screen Long battery life (9.33 hrs)  Useful for outdoor purposes

11. Many competitions’ prizes are the iPad, consumers tend to notice and desire the product. Apps used in Medicine, Testing etc Used in education systems, work presentations  consumers’ huge exposure to the product

12. Main factors Price factors Cost of Production Price of an iPad Changes in price of related goods Non-price factors Government policies Expectation of future prices Supply Markets (Markets of export)

13.  Designed in California  Assembled in China  Product of globalisation  Cost of Production:US$259.60

14. Outsourcing of resources Designed in developed country Manufactured In developing country Lower cost of labor Lower cost of production Lower unit cost of product Competitive pricing Higher profit margin More supply of iPad Higher overall profit Maximises profit

15. Setting higher price Higher profit per unit Motivate Apple to produce more iPad Increase production of iPad Higher cost of production Higher price needed to cover additional cost

16. Lack of retailer store No intermedaries Direct sales of iPad Lower cost of product More purchasing power Higher quantity demanded Increase in sales volume Higher profit margin

17. Higher price Lower purchasing power Less ability to afford an additional unit of iPad Quantity demanded decrease Lower profit margin

18.  Related goods: iPhone, iPod, accessories of Apple products  Joint supply: goods that are produced jointly together with the same resources (technology products with similar functions)

19. An increase in demand for iPad Demand for iPad related accessories Quantity demanded surged Increase in supply of Apple accessories Higher profit margin for Apple Diversion of resources Decrease in supply of iPhone/iPod

20.  Ad valorem tax: tax that is a fixed percentage of the price of the good (eg. VAT,GST)

21. Higher sales tax More costly iPad Lower purchasing power Lower quantity demanded Affects marketing strategies via allocating more resources in markets with lower sales tax

22.  popularity of Apple product leads to surge in quantity demanded for iPad, a new Apple product

23.  Release in iPad 2 leads to fewer quantity demanded for iPad  A decrease in price of iPad is seen (via price mechanism)  Lower profit margin per unit  Fewer quantity supplied

24.  Major emerging markets in developing world: BRIC countries (Brazil, Russia, India, China)

25. Developing World High economic growth Rise in income/ wealth Higher standard of living Higher purchasing power Higher quantity demanded for iPad More profit margin More quantity of iPad supplied

26. China/USA Huge population Large domestic market Great potential to market iPad More people with ability to afford iPad Higher quantity demanded More profit margin More quantity of iPad supplied

27.  http://www.electronista.com/articles/10/04/07 /apple.still.keeps.margins.on.tablet.costs/ http://www.electronista.com/articles/10/04/07 /apple.still.keeps.margins.on.tablet.costs/  http://www.nytimes.com/interactive/technolo gy/personaltech/2010-tablet-computer- comparison.html?ref=technology http://www.nytimes.com/interactive/technolo gy/personaltech/2010-tablet-computer- comparison.html?ref=technology