2. IPAD ECONOMICS

3. MEMBERS Viola Shermayne Tsui Yan Audrey Sheana Pei Yi

4. PROJECT A  VIOLA -When did the iPad first originated?  SHERMAYNE -How is the price of the iPad determined?  TSUI YAN -What are the related/associated products of the iPad? -How are these products related to iPad?

5. ORIGIN The MessagePad was the first series of personal digital assistant devices developed by Apple for the Newton platform in 1993. ARM6 processor core with Acorn Computers Apple re-entered the mobile-computing market in 2007 with the iPhone. it pioneered the multitouch finger- sensitive touchscreen interface of Apple's iOS mobile operating system. By late 2009, the iPad's release had been rumored for several years. Such speculation mostly talked about "Apple's tablet " The iPad was announced on January 27, 2010, by Steve Jobs at an Apple press conference at the Yerba Buena Center for the Arts in San Francisco.

6. FEATURES

7. HOW IS THE PRICE OF THE IPAD DETERMINED ? iPAD MODELPRICE 16 GBWi-Fi only USD 499 Wi-fi+3G USD 629 32 GBWi-Fi only USD 599 Wi-fi+3G USD 729 64 GBWi-Fi only USD 699 Wi-fi+3G USD 829 Selling Price:

8. HOW IS THE PRICE OF THE IPAD DETERMINED iPAD MODELPRICE 16GB Wi-Fi only USD 229.35 Wi-Fi + 3G USD 257.65 32GB Wi-Fi Only USD 258.85 Wi-Fi + 3G USD 287.15 64GB Wi-Fi OnlyUSD 317.85 Wi-Fi+3GUSD 346.15 Estimated Cost Price:

9. HOW IS THE PRICE OF THE IPAD DETERMINED ?  Apple makes a significant amount of profits -Why is Apple able to get us to pay such a high cost? We are willing and able to pay that sum of money for iPads. This has led to a HIGH DEMAND which induces them to increase their supply. However Apple requires higher prices to produce more in the short run thus enabling Apple increase its selling price. In conclusion, the cost of an iPad is basically set by Apple to maximize profits as seen from the tables.

10. WHAT ARE THE RELATED PRODUCTS OF THE IPAD? Substitutes Items which are have uses similar to that of the iPad Complements Items which require the presence of the iPad for usage

11. IPAD SUBSTITUTE: NOTION INK First to have Pixel Qi screen integration First example of the huge revolution that comes with ARM Cortex A9 Power and a Pixel Qi.

12. IPAD SUBSTITUTE: MICROSOFT COURIER Match Apple when it comes to user interface innovations Folding dual screen that is more like a pen and touch-controlled digital journal and eReader at the same time

13. IPAD SUBSTITUTE: HP SLATE Features include 10-inch multi-touch screen, Windows 7, supports Flash video playback, Wi-Fi Bluetooth

14. IPAD SUBSTITUTE: THE ICD ULTRA 7-inch resistive single-touch display, 256MB of RAM and 512MB of ROM, 4GB internal flash memory and 3G option.

15. IPAD COMPLEMENT: ZAGGMATE IPAD CASE Features a hinge stand, and optional wireless Bluetooth keyboard for easy typing QWERTY keyboard offers special function keys for music control, volume control

16. IPAD COMPLEMENT: IPAD KEYBOARD Combines a dock for charging your iPad with a full-size keyboard, which includes special keys that activate iPad features.

17. PROJECT B Discuss how recent developments would affect your marketing and pricing decisions for the iPad.

18. FACTORS AFFECTING DECISIONS Producer’s Point of View PriceTaste Price Cross Elasticity of Demand Demand Consumer’s Point of View

19. FACTORS AFFECTING DECISIONS Producer’s Point of View PriceTaste Price Cross Elasticity of Demand Demand Consumer’s Point of View

20. CONSUMER’S POV: PRICE  More substitutes  iPad becomes increasingly price elastic  Qty dd > proportionate amount  Earn total revenue POV: Point of View

21. FACTORS AFFECTING DECISIONS Producer’s Point of View PriceTaste Price Cross Elasticity of Demand Demand Consumer’s Point of View

22. Lighter Wider variety of applications Watch movies Surf the net Ebook POV: Point of View CONSUMER’S POV: TASTE Demand for substitutes, Demand for iPad, In price equilibrium, Qty dd

23. FACTORS AFFECTING DECISIONS Producer’s Point of View PriceTaste Price Cross Elasticity of Demand Demand Consumer’s Point of View POV: Point of View

24. PRODUCER’S POV: PRICE  Change in price = Change in position ALONG supply curve  price of iPads, qty dd for iPad, profits rational behaviour *Central Economic Problem* Firms’ aim: Maximise Profits

25. FACTORS AFFECTING DECISIONS Producer’s Point of View PriceTaste Price Cross Elasticity of Demand Demand Consumer’s Point of View POV: Point of View

26. PRODUCER’S POV: XED XED is the Cross Elasticity of Demand. POV: Point of View  Non-price competitive alternatives  Complementary sales  Providing more details of the iPad  Demand, Profits

27. FACTORS AFFECTING DECISIONS Producer’s Point of View PriceTaste Price Cross Elasticity of Demand Demand Consumer’s Point of View POV: Point of View

28. PRODUCER’S POV: DEMAND  Substitutes, Choices  profits  Profit motivated firms can do a better job. POV: Point of View

29. BIBILOGRAPHY http://www.ipad-answers.com/is-there-any-substitute-for-the-ipad/ http://www.netbooknews.com/3065/top-5-ipad-alternatives-do-you-think-they-stand- up-to-the-ipad/ http://www.mydigitallife.info/2010/11/15/zaggmate-ipad-case-with-integrated-wireless- bluetooth-keyboard/ http://www.videoipadconvertermac.com/ipad-accessories/ipad-keybaord.html http://www.buzzle.com/articles/ipad-cost.html

30. BIBILOGRAPHY http://www.ipad-answers.com/is-there-any-substitute-for-the-ipad/ http://www.redmondpie.com/ipad-vs-galaxy-tab-comparison/ http://www.slashgear.com/ipad-vs-galaxy-tab-16102821/ http://www.apple.com/ipad/ http://www.diffen.com/difference/Samsung_Galaxy_Tab_vs_iPad http://www.msnbc.msn.com/id/40094205/ns/technology_and_science-wireless/ http://www.bloomberg.com/news/2010-11-18/rim-s-rival-to-ipad-wins-fans-as-corporate- customers-seek-secure-tablets.html http://www.bloomberg.com/news/2011-01-31/android-tablets-gain-on-ipad-in-fourth-quarter- researcher-says.html

31. THE END