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iPad Market

iPad Market. How has the iPad market changed? How will it affect you as an economic student?. Brief Facts about the iPad. It has a large screen Camera on both sides to allow facebook video calling etc LED-backlit display for graphic purposes Multi-Touch Advanced mobile operating system

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iPad Market

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  1. iPad Market How has the iPad market changed? How will it affect you as an economic student?

  2. Brief Facts about the iPad • It has a large screen • Camera on both sides to allow facebook video calling etc • LED-backlit display for graphic purposes • Multi-Touch • Advanced mobile operating system • Originated in April 2010 (appeared in market)

  3. How is the price of iPad determined? • Determined by the interaction of supply and demand curve • Intersection between these two curve provides us with the equilibrium point

  4. Gradient of demand curve • Many substitutes of iPad available • Large proportion of income spent (around $SGD 600-900) • Luxury good • Demand for iPad is price elastic • Gradient - Gentle

  5. Gradient of Supply curve • Easily stored • Luxury good • Easily transported • Supply for iPad is price elastic • Gradient- Gentle

  6. Combination of demand + supply curve Intersection at (Q1,P1) P1 is equilibrium price Q1 is equilibrium quantity Graph of price against quantity of iPad

  7. Price of iPad determined • The intersection between demand and supply curve • Demand = Supply • Market equilibrium • Price of iPad determined by intersection

  8. Related products of iPad • Complements (paid applications, iPad cover etc) :D • Substitutes (Samsung galaxy tab, net books) D: • Different type of relationship with iPad

  9. Complements • Products that complement each other and have a positive relation • Increase in demand for iPad would cause an increase in demand for paid applications • Cross elasticity demand (XED) value is always negative for complements

  10. Substitutes • Products that act as sub have inverse relationship with each other • Decrease demand for iPad can cause an increase in demand for sub • iPad 2, an extremely close sub of iPad • XED value is positive

  11. Recent Developments • Changing Taste of Consumers (Consumer POV) • Earthquake in Japan (Consumer POV) • Conflict in Arab Countries (Producer POV) • Introduction of iPad 2- Changing prices of related goods (Producer POV)

  12. Changing Taste of Consumers • Introduction of iPad 2 • Better features (graphic) than iPad • Consumer prefer iPad 2 instead • Demand for iPad decreases

  13. Earthquake in Japan • Severely affected the income of Japan people • Necessities become top priority according to Maslow hierarchy of needs • iPad is a luxury good • Decrease in demand for iPad

  14. Conflict in Arab Countries • War in Arab countries increased prices of oil • Cost of production increased • Total revenue being constant as price is fixed • Total profit decreases • Supply for iPad decreases

  15. Introduction of iPad 2 • Released recently, 11 March in US • Better features • Consumers cast higher dollar votes for iPad 2 • Prices of iPad 2 increases • iPad and iPad 2 in competitive supply • More resources allocated to iPad 2 • Reduces supply of iPad

  16. How does recent development affect marketing and price decisions? • Recent developments caused decrease in supply/demand of iPad • iPad market reaching saturation • iPad market no longer profitable

  17. iPad life cycle stage is near the decline portion Decline occurs due to presence of better products and changes in consumer taste Life cycle of iPad

  18. How does recent development affect marketing and price decisions? • iPad market is declining • In response, decrease price of iPad • Increases the current sale of iPad • Marketing iPad would be irrational • Presence of better products (iPad 2)

  19. Conclusion • Market of iPad is declining • Demand for iPad is reducing • Producers should discontinue producing iPad • Not profitable in the long run • Should venture into new markets, (iPad 2 which is profitable now)

  20. Credits • http://www.seattlemet.com/blogs/culture-fiend/archives/2009-07/2009-08/ • http://hothardware.com/News/Are-Tablet-PCs-Killing-The-Netbook-Maybe/ • http://androidmeup.com/articles/samsung-galaxy-tab-hopefully-an-ipad-killer • http://jessieshare.wordpress.com/2010/07/28/cyber-acoustics-launched-portfolio-cover-leather-case-for-ipad/ • http://www.shuttervoice.com/9473/ipad-applications-make-your-tablet-device-useful-for-you.html • http://www.crunchgear.com/tag/ipad-2/ • http://www.themoneytimes.com/articles/20081126/latest_report_shows_cancer_cases_in_the_united_states_is_decreasing-id-1042640.html • http://support.easyonlinecare.com/earthquakes-in-arkansas • http://alansmoneyblog.com/2008/05/22/oil-smashes-135-per-barrel/

  21. Thank You! • Thank you for your kind attention • Hope you understand the iPad market better • Have a great day :D

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