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Gulliver Team’s Findings (11S415)

Gulliver Team’s Findings (11S415). Market For IPad. Overview of our Findings. Origins of IPad Determination of IPad prices Related Goods How some Price/Non-Price factors affect Supply and Demand for IPad. The Birth of IPad. Announced on 27 th January 2010 By Steve Jobs

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Gulliver Team’s Findings (11S415)

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  1. Gulliver Team’s Findings (11S415) Market For IPad

  2. Overview of our Findings • Origins of IPad • Determination of IPad prices • Related Goods • How some Price/Non-Price factors affect Supply and Demand for IPad

  3. The Birth of IPad • Announced on 27th January 2010 • By Steve Jobs • At the Yerba Buena Center for the Arts in San Francisco

  4. Calculating IPad Prices • 16 Gbyte Wi-Fi Apple IPad • Individual Components within the IPad Cost $250.60 • Total Cost is $259.60

  5. Archos 9 • $550 • 60 GB • 1.3MP Camera • 5-hour battery life • Smaller display screen

  6. Motorola Xoom • $600 - $800 • 32 GB • 10-hour battery life • Dual Camera: 5MP (rear) & 2MP (front) • Slightly bigger display screen

  7. Apple Digital AV Adapter Display what’s on the iPad on a bigger screen

  8. iPad Camera Connection Kit • import photos and videos from a digital camera: using camera’s USB cable or directly from an SD card.

  9. Consumer’s Thought • Income of Consumers • Increase in income Consumers more willing and able to buy IPad Demand for more IPad (normal good) Demand curve shifts Rightwards • And Vice Versa

  10. Consumer’s Thought • Taste and Preferences • Increase of preference for IPad Higher Individual demand for IPad Rightward shift of the Demand curve • And Vice Versa

  11. Demand Curve Price of IPad D2 Rightward shift of demand for IPad (due to both increase in income and taste and preferences) D1 0 Quantity

  12. Producer’s Thought • Government Policies • Higher Ad-Valorem Tax Higher cost of production per unit Lower supply of IPad Leftward shift in supply curve (S0 to S2 below) • And Vice Versa

  13. Producer’s Thought • Increased number of sellers • Higher number of sellers increase in supply of IPad as more firms produces the IPad Rightward shift of supply curve (S0 to S1 below) • And Vice Versa

  14. Producer’s Thought • State of Technology • Advanced technology More efficient use of resources Increased output per unit of IPad at each possible price Increased supply of IPad Rightward shift of supply curve (S0 to S1 below) • And Vice Versa

  15. Supply Curves S0 S2 Price of IPad S1 Pe Q2 0 Q1 Q0 Quantity

  16. Producer’s Thought • Change in the price of the good itself • Demand for IPad increases Price of IPad increases Output per unit increases in the short run • Firms increase price of IPad to cover increased cost of production outward shift of supply curve (Below) • And Vice Versa

  17. Supply Curve Price of IPad S P2 P1 0 Q1 Q2 Quantity

  18. Sources: http://www.apple.com/ipad/from-the-app-store/http://www.apple.com/ipad/features/http://en.wikipedia.org/wiki/IPadhttp://www.motorola.com/Consumers/US-EN/Consumer-Product-and-Services/Tablets/ci.MOTOROLA-XOOM-US-EN.althttp://www.tgdaily.com/hardware-brief/48287-there-are-products-that-hope-to-beat-the-ipadhttp://www.ipadforums.net/ipad-general-discussions/209-ipad-vs-archos-9-a.htmlhttp://www.isuppli.com/Teardowns/News/Pages/Mid-RangeiPadtoGenerateMaximumProfitsforApple,iSuppliEstimates.aspxhttp://en.wikipedia.org/wiki/Ipad http://www.google.com.sg/images

  19. Sources: iPad Death WatchCNN Money Articlehttp://www.associatedcontent.com/article/2834600/apple_ipad_sells_out_demand_exceeds.htmlhttp://mashable.com/2010/01/27/9-upcoming-tablet-alternatives-to-the-apple-ipad/\http://www.customs.gov.sg/leftNav/trad/Valuation+Duties+and+GST.htmhttp://asiancorrespondent.com/37156/iphone-usage-across-asia/http://www.wired.com/gadgetlab/2010/09/first-look-samsung-tablet/http://www.bloomberg.com/news/2010-11-18/rim-s-rival-to-ipad-wins-fans-as-corporate-customers-seek-secure-tablets.htmlhttp://www.bridgat.com/files/Apple_Ipad.jpghttp://iphone5newsblog.com/wp-content/uploads/2011/02/ipad-600x400.jpghttp://www.youthinmind.sg/uploadedImages/Content/Youth_Chat/Blogs/Double_Sides/iphone-ipad.jpghttp://www.dailybloggr.com/wp-content/uploads/2010/11/Samsung_Galaxy_Tablet.jpghttp://www.gnagri.net/wp-content/uploads/2010/07/Acer_tablet-PC.jpghttp://exploreredia.com/iPad-2-release-date-features-price-and-pictures-2011/http://app.singaporebudget.gov.sg/budget_2011/default.aspx

  20. Gulliver’s Awesome Team Members: Ronnie Tan Vernon Yeo XinHorng Vincent Low Han Chong

  21. And That’s the end of Gulliver Team’s Findings on IPad! Thank you for your attention

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