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Economics Web Quest

Economics Web Quest. Project Presentation Group Members: Sherwinder, Darren, Vivek and Nicholas. iPad. Here are some attributes of the iPad Has wifi and 3G data roaming Latest operating system IOS 4.3 Rather light for a tablet PC (680g) Long battery life (1 month standby) Touch-screen

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Economics Web Quest

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  1. Economics Web Quest Project Presentation Group Members: Sherwinder, Darren, Vivek and Nicholas

  2. iPad Here are some attributes of the iPad • Has wifi and 3G data roaming • Latest operating system IOS 4.3 • Rather light for a tablet PC (680g) • Long battery life (1 month standby) • Touch-screen • Can be used as a e-book reader • Can be used as a gaming device • A4 card, fast internet surfing speed

  3. When did the iPad originate? • Tablet PCs seem to be the hype and the market is doing very well • Apple re-entered market of mobile computing in 2007. • iPad officially announced in Jan 27 2010 • 1st released in U.S.A. on April 2010

  4. How is the price of the iPad determined? • Analysing demand/supply of tablet PCs • For example, if demand is high, price of iPad would be high too. • This is due to the consumers casting higher dollar votes to ensure they obtain the iPad. • Signal to producers to produce more, price of iPad can be higher. • Those can’t afford rationed out. • Those who can afford pay at equilibrium price ($499 - $829) • Price range due to some iPad having more memory/3G.

  5. What are related products to iPad? (Substitutes) • Other tablet PCs like galaxy tab • Acts as substitutes to the iPad, satisfy same wants • Price of galaxy tab Qty DD of galaxy tab Demand of iPad • Substitutes like the Amazon kindle are weaker • Kindle’s main function is as a e-book reader • lesser functions/attributes than iPad • Consumers who have high expectations will choose iPad

  6. Substitutes Samsung galaxy tab Amazon Kindle

  7. What are related products to iPad? (Complements) • iPad covers/keyboards • Most people who buy iPads would purchase cover too. • E.g. if price of iPad the quantity demanded as more people are rationed into the market • and to "decorate" their iPad with fashionable iPad covers, the demand of iPad covers too.

  8. Complements iPad covers iPad keyboard

  9. Project B Over the years recent developments have affected the marketing and pricing decisions of Apple and its iPad!!!

  10. Producer’s POV Development of Computers Technology advancement

  11. Development of Computers In the producers’ point of view…… • In the past 5 years, improvements have been made to laptops/desktops. • Development of Windows 7 and Windows Vista. • Laptops/Desktops are substitutes to the iPad as they both can surf the net. • However, instead of demand of laptops increasing, sales have fallen. • Tablet PCs like the iPad have better attributes than laptops and become weaker subs. Consumers choose iPad. • Demand of tablet PCs still • Consumers cast higher dollar votes to obtain iPad, prices • Apple can continue to produce more iPads at high prices to maximise profits.

  12. Development of Technology In the producers point of view…… • Technology is vastly improving in the 21st century • Invention of Apple designed A4 card for iPad a package on package (PoP) system-on-a-chip (SoC) • make iPad have more attributes such as faster internet surfing speed. • Developments in technology would mean better quality resources • Increased efficiency in manufacturing iPads, leading to lower cost of production per unit of iPad. (up profits) • Since firms aim to maximise profits, Apple should aim to supply more iPads in the future. (increase supply)

  13. Consumer’s POV Economic development Cheaper Substitutes - e.g. Samsung galaxy tab

  14. Economic Development In the consumer’s point of view…… • iPad was released on April 2010 in the U.S.A. • At that period GDP of U.S.A. was 14400 billion dollars and there is a generally increasing trend.

  15. Economic Development In the consumer’s point of view…… • Consumers have higher income/spending power • They go for normal goods/luxuries • Since iPad is a luxury, it is income elastic (positive and high YED) • income will lead more than proportionate in demand • Consumers willing and able to pay, cast higher dollar votes to obtain it • Signal to producers to increase quantity supplied • iPads can be sold at higher price to max profit of Apple

  16. Development of Cheaper Substitutes In the consumer’s point of view…… • Other producers begin to manufacture substitutes to rival the iPad • The selling price some of these substitutes is cheaper • E.g. Samsung Galaxy Tab is about $200 cheaper than iPad • Consumers choose to consume cheaper substitute (rationally) as they both satisfy the same need • qty demanded of Galaxy Tab demand of iPad • Thus, apple needs to have better advertisements/promotions to increase sales of iPad or lower price of iPad in future (to max profits)

  17. Bibliography http://en.wikipedia.org/wiki/History_of_tablet_computers http://www.forecasts.org/gdp.htm http://news.cnet.com/8301-17938_105-10443186-1.html http://en.wikipedia.org/wiki/Apple_A4 http://mobility.cbronline.com/news/pc-growth-hurt-by-rising-demand for-tablet-computers-gartner-040311

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