1. Atlas’ Lemon Analysis of iPad market...

2. First Generation iPad

3. Launched on 3rd April 2010 3rd post-PC blockbuster by Apple Inc. Sold almost 15 million iPad in 9 months Generated sales revenue of USD$9.5 billion (April - December 2010) Fastest-selling consumer product in history

4. How is the price of iPad determined?

5. By the interaction between the demand and supply forces

6. Demand The quantities of a product that consumers are willing and able to buy at various prices per period of time, ceteris paribus

7. Supply The quantities of a product that suppliers are willing and able to sell at various prices per period of time, ceteris paribus

8. Related/ Associated Products

9. Substitutes Alternative products to iPad Competitors for market shares Price of substitutes affect iPad’s demand Closer the goods, the greater the change in demand for iPad

10. Complements Used jointly to satisfy some particular wants and needs Fall in price of complements will lead to the increase in demand for iPad Closer the goods are as complements, the greater the change in demand

11. Recent Developments Foxconn increased wages Development of substitutes Natural disasters Improvement in economy Features

12. iPad 2

13. Launched in USA on 11 March 2011 Thinner Lighter Cameras Faster Processor Available in WHITE!

14. Producer’s Point of View

15. Cost of production Gotten feedback from first generation iPad Advertising Producer’s Point of View

16. Cost of production Gotten feedback from first generation iPad Advertising Producer’s Point of View

17. Foxconn Increased wages 2 times in less than a week 30% first Then, 66% performance based pay rise

18. Natural disaster 8.9 earthquake - 11 March 2011 Delay in launch of iPad 2 Apple’s Japan Factory 5 key components said to be made by Japan’s Apple Factory Shortages

19. State of Technology Improved since the first-generation iPad Thinner, Lighter More features Quality of product Taste & Preferences of consumers Demand for iPad increases

20. Cost of production Gotten feedback from first generation iPad Advertising Producer’s Point of View

21. New features Installed to the iPad 2 Cameras Linking of Apple’s products FaceTime - Video Call

22. Cost of production Gotten feedback from first generation iPad Advertising Producer’s Point of View

23. Advertising Reviewers, Reporters “Free” advertisement for Apple Simple, neat, elegant High quality product

24. Customer Relations Department

25. Consumer’s Point of View

26. Income Price Distribution Taste & Preferences

27. Consumer’s Point of View Income Price Distribution Taste & Preferences

28. Income Non-price factor -- Affects demand Economy recovering from economic downturn Income increases More disposable income Assuming iPad to be a normal good Demand for iPad will increase

29. Consumer’s Point of View Income Price Distribution Taste & Preferences

30. Price USD$499 for iPad 2 entry level First generation iPad dropped USD$100 Appearances of new substitutes iPad’s demand decreases Price is supposed to decrease as well to achieve equilibrium price for iPad

31. Consumer’s Point of View Income Price Distribution Taste & Preferences

32. Distribution Distribute (sell) their products Different target groups Apple’s 3 channels of distribution: Apple Online Store Apple Stores Resellers - eg. epiCentre

33. “One of the things that enabled us to roll out this technology so fast was our Apple Retail Stores... educate customers... without these Stores, I don’t think we would have been as successful either” - Steve Jobs, Apple KeyNote 2nd March 2011

34. Consumer’s Point of View Income Price Distribution Taste & Preferences

35. Product

36. Brand Safety & Security Features Peace of Mind Accessories and services

37. Thank you for your ATTENTION