Economics Project. Done by: Valerie, Hanan , Linus , Edward, Samantha, Cherie. How is the price of the iPad determined?. Cost to make – S$415
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Done by: Valerie, Hanan, Linus, Edward, Samantha, Cherie
How is the price of the iPad determined?
Cost to make – S$415
Price is determined by what the market is able and willing to pay (iPad 2nd gen. Costs the same as the 1st gen. Which shows that that is the price customers are willing to pay) and the price of their rivals eg. Samsung Galaxy Tab, Microsoft Courier, HP Slate…
When did the iPad first originated?
Apple's first tablet computer was the Newton MessagePad 100,introduced in 1993, which led to the creation of the ARM6 processor core with Acorn Computers. Applere-entered the mobile-computing market in 2007 with the iPhone.
Smaller than the iPad but featuring a camera and mobile phone, it pioneered the multitouch finger-sensitive touch screen interface of Apple's iOS mobile operating system. By late 2009, the iPad's release had been rumoured for several years. 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
What are some of the related/associated products for iPad? How are these products related to the iPad?
iPad keyboard dock- It is used for charging the Ipad. This includes a full-sized keyboard which allows the user to use special keys to activate ipad features. The dock has a rear dock connector port which lets you connect to an electrical outlet using the USBpower adapter ,sync to your computer and use accessories.
Ipad case – used for carrying Ipad around. Acts as a stand that holds Ipad at an ideal angle for watching videos and slide shows
3. Ipad camera connection kit – able to import photos and videos from a digital camera : using cameras, USB cable or directly from an SD card
4. Ipad dock – for syncing or charging and an audio line outportfor connecting to power speakers via an optional audio cable
5. Ipad low USB power adapter – charge Ipad directly through an electrical outlet
6. Ipad dock connector to VGA adapter – watch slide shows and movies on the big screen by connecting Ipad to a TV, monitor, projector or LCD display that uses a VGA connector
7. Apple in-ear headphones with remote and microphone–used for hearing music and adjusting volume
8. Apple composite AV cable –watch Ipad videos on a big screen with full stereo sound by connecting Ipad to the composite video and stereo audio inputs on television or home theatre system.
9. iPad apps -The iPad syncs with iTunes which sells pared down versions of Pages, Numbers, and Keynote apps in the App Store. The iPad has lots of third party applications available for it; as of September 1, 2010, there were 25,000 iPad specific apps on the App Store.
From the view point of the producersRemember:Producers aim to maximise profits
1. Availability of substitutes?
2. Proportion of income spent on iPad?
4. Is iPad a luxury or a necessity?
Why use XED to base our view?
Since, the Ipad is facing competition from other tablet devices, producers should:
If successful, it will increase the demand of Ipad and its price may become more price inelastic. This will cause both the price and output to rise and hence the revenue of the producers.
2. Or the Ipad producers can lower its price just as much to ensure that its revenue is maintained.
What do consumers think of the price of Ipad?
From left to right: Ipad, JooJoo, Kindle, Sony Reader, IRex and Barnes&NobleNook
Rising income of consumers:
As we can see, Singapore’s economy is generally doing well with positive developments and this reflects the rising income levels of Singaporeans. Thus, they would be more willing and able to purchase luxury goods such as the Ipad.