IPAD Market Analysis

MemBers: Low yik choong

Ng Jen HoEdric PhuaSim Hak JinIsaac Tan

IPAD Market Analysis

Table of Contents When did the iPad first

originated How is the price of iPad first

determined• related/associated products

for the ipad• How are these products

related to the ipad • Developments affecting

marketing and pricing decisions for the iPad

• Consumer & producer point of view

Project A

•Origination of iPad Official Release : 3 April

2010 Introduction: 27 January

2010 Development : Before

Iphone development

How is the price of the iPad 1st determined

prices are determined by demand and supply forces. decisions of producers determine the supply decisions of buyers determine the demand. interaction of demand and supply that determines the market prices of goods.hardware of the iPad is similar to iPhone, research and development cost is kept low. Apple needs to increase supply of goods to keep their cost down.

Ipad Accessories Wireless keyboard Camera connection kit Smart Cover Digital AV kit

Ipad accessories Composite AV

Cable Component AV

Cable Earpiece Dock

Substitutes

Android (Google & Samsung)

Motorola XOOMHP TabletDell Mini 5Joojoo

Comparison

Project B• Factors from the consumers point of

view( Japan Earthquake) Sendai earthquake on 11 March 2011 claimed hundreds of lives,

consumers will reallocate their disposable income in the form of monetary donations to aid the victims.

purchasing power decreases as people suffer monetary losses from the destruction caused

lesser demand for iPad as the people have spent their disposable income to help the victims albeit their income remaining constant.

By the signaling function, prices of iPad will decrease as demand decreases as they have a direct proportion relationship.

Project B• Factors from the producer’s point of view/

Supply factors¥ Competitive supply: iPad v.s. iPad2

i. Similar resources used to produce both goods

ii. Demand is greater for iPad 2,iii. Driving price of iPad 2 upiv. Apple is profit oriented. Increases

quantity supplied for the iPad 2.v. Quantity supplied for the iPad will

fallvi. Apple also slashes the price of

iPad, to make room for the iPad 2

Project B

• Factors from the producer’s point of view/ Supply factorsGovernment policies

i. In April 2010, Israel banned the iPad in the country for a few weeks,

ii. it was believed that the iPad’s higher wi-fi signal power may interfere with other communication devices.

iii. Ban lifted as assumptions were proved wrong

iv. Sales of iPad falls, demand decreases, supply decreases.

Project B

• Factors from the producer’s point of view/ Supply factors

Government policiesiii. Ban lifted as assumptions were

proved wrong

iv. Sales of iPad falls, demand decreases, supply decreases.

Credits

• http://en.wikipedia.org/wiki/IPad

• http://www.macobserver.com/tmo/article/the_hottest_ipad_products/

• http://www.apple.com/ipad/accessories/

• http://phandroid.com/2010/01/29/android-tablets-vs-apple-ipad-comparisonreview/

• http://gizmodo.com/#!5518002/ipad-imports-banned-in-israel

Credits

• http://moneywatch.bnet.com/saving-money/article/apple-ipad-is-it-worth-the-money/388371/

• http://www.appleinsider.com/articles/11/03/11/live_teardown_of_apples_ipad_2_currently_underway.html

• http://peterthomson.posterous.com/the-economics-behind-the-new-ipad