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the iPad pricing and marketing decisions

the iPad pricing and marketing decisions. economics project. pROJECT A. When did the ipad first originated?.

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the iPad pricing and marketing decisions

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  1. the iPad pricing and marketing decisions economics project

  2. pROJECT A

  3. When did the ipad first originated? • Apple INC. started the iPadon the 23 of April, 2008. The construction of the iPad is a very complex process, taking almost two years to finish the product before it was announced into the market on January 27, 2010.

  4. HOW IS THE PRICE OF THE IPAD DETERMINED? • The price of the iPad is determined by demand and supply forces. • The decision of the producers determines the supply of the iPad while the decisions of buyers determine the demand. • It is the interaction of demand and supply that determines the market prices of goods and services.

  5. HOW IS THE PRICE OF THE IPAD DETERMINED? Market equilibrium occurs at a price where the quantity demanded is equal to the quantity supplied. If there is an increase in demand, the price of the iPad will increase. On the other hand, if there is a decrease in demand, the price of the iPad will decrease. SS Price E Pe DD Qe Quantity

  6. what ARE SOME OF THE RELATED/ ASSOCIATED PRODUCTS FOR THE IPAD?

  7. Complements iPad apps iPad sleeves

  8. Substitutes VS

  9. pROJECT B

  10. Consumer’s pov: price of substitutes • Recent development: Introduction of 3 new tablets by • Acer. • “Acer Inc., the Taiwanese laptop maker, debuted its first tablet computers today, becoming the latest company to challenge Apple Inc. and its market-leading iPad… the tablets would likely be in the previously stated range of $299 to $699.”

  11. decisions

  12. graphs $ of iPads $ of Acer tablets D4 D1 D2 D3 Quantity of iPads Quantity of Acer tablets

  13. consumer’s pov: taste • Recent development: Speculations of iPad 2. • “There will be two new cameras, one at the front and one rear facing plus a USB port and an improved display screen… Those rumours turned out to be correct. That device has gone on the dominate the tablet PC market.”

  14. decisions

  15. GRAPHS $ of iPads D1 D2 Quantity of iPads

  16. PRODUCER’S POV: CHEAPER SUBSTITUTES • Recent development: Cheaper devices (Android, Acer • tablets) in competition with iPad. • “A wider range of cheaper devices with Google features like YouTube and Google Maps will probably erode the iPad’s market dominance…”

  17. DECISIONS

  18. graphs $ of iPads $ of Acer tablets S1 S1 S2 D1 D1 D2 Quantity of iPads Quantity of Acer Tablets

  19. producer’s pov: increase in price of complements • Recent Development: Increasing price for iPad apps • “MrPusenjak is the creator of an iPhone game called Doodle Jump. His two-man developer shop has sold 3.5m units at 99 cents (67p) and will price it at $1.99 (£1.35) on the iPad. • “Likewise another game called Animatch, where users have to match the heads of cute animals, will be pitched at $1.99 instead of 99 cents… • “Since launching 14 months ago, it has sold 2.4m units at 99 cents (67p) each. MrCastelnuovo will bring the game to the iPad for the higher price of $2.99 (£2).”

  20. DECISIONS

  21. GRAPHS $ of iPad apps $ of iPads S1 S1 S2 D1 D1 D2 Quantity of iPads Quantity of iPad apps

  22. BIBLIOGRAPHY • Bloomberg. (2010). Acer seeks piece of iPad market with introduction of three tablets devices. Retrieved March 17, 2011, from http://www.bloomberg.com/news/2010-11-18/rim-s-rival-to-ipad-wins-fans-as-corporate-customers-seek-secure-tablets.html • BBC. (2010). Apple ‘iPad 2’ rumors grow online. Retrieved March 17, 2011, from http://www.bbc.co.uk/newsbeat/11863568 • Bloomberg. (2011). Android tablets gain on Apple iPad in Fourth Quarter. Retrieved March 17, 2011, from http://www.bloomberg.com/news/2011-01-31/android-tablets-gain-on-ipad-in-fourth-quarter-researcher-says.html • BBC. (2010). iPad apps to cost more says developers ahead of launch. Retrieved March 17, 2011, from http://news.bbc.co.uk/2/hi/8590300.stm

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