About the iPadWhen did the iPad first originate?

Decided in the end to build a phone with the same functions

Hence had its origins way back in 2007

Idea first conceived by Steve Jobs even before that of the iPhone ; He wanted ‘a glass, multi-touch display’

How is the price of iPad determined?

About the iPad

By calculating the estimated total revenue minus production cost,

aiming to maximize profits

Observing the price of close substitutes

Quantity demanded by consumers; change in quantity demanded would result in a change in the price of a good so as to maximize profits, ceteris paribus

Producers have to look out for SUBSTITUTES

vs

Samsung Galaxy Tab iPad

The further the substitute,

the smaller the change in demand

Price wars

The iPad’s closest rival is Samsung’s Galaxy Tab, which boasts Wi-Fi, 3G connectivity and Bluetooth

It also has a large battery (4,000 mAh) which provides at least 7 hours of viewing time

Both have almost the same form and function

Marketing and branding strategies are what set them apart

Related/Associated Products

Related/Associated Products

In order to increase demand and increase profits, iPad producers

must lower their prices.More variety

(such as Blackberry Playbook, HP Touchpad, Dell Streak 7 and Samsung Galaxy Tab)

leads to more choices.

Consumers can now choose their product according to their taste and preference.

Consumers will turn to cheaper substitutes that satisfy same wants.

COMPLEMENTS

The demand for iPads is very responsive to the change in the price of the apps and accessories.

Consumers need to purchase apps

through the Apps Store to be installed

to their iPads.

Accessories (such as the iPad smart cover and the Apple wireless keyboard)

are also complements to the iPad.

A fall in the price of the apps will lead to more quantity demanded, hence causing an increase in the

demand for iPads since they need to be used jointly.

Apple also includes free shipping and free iPad engraving for consumers who order iPad from the Apple Online Store. + A limited hardware

warranty is also available with every purchase of the iPad.

More consumers will be attracted,

increasing the demand of iPads in

the market.

Producers also have to keep a lookout for income of consumers.

On the other hand, a decrease in income

Income of consumers

Increase in the demand for iPads.

Increase in income

decrease in the demand for iPads (consumers are less willing and

able to purchase the good)

Instead, consumers will consider switching to normal goods such as

Nokia phones.

We hope you enjoyed our presentation!

Done by:GwendolynMuslihahSarah Tan

AnisaAbigail SimAbigail Tan

11A101

WEB LINKShttp://store.apple.com/us/browse/home/shop_ipad/family/ipad

http://www.apple.com/ipad/accessories/

Search engines (for images and information on iPad)

http://www.google.com

http://www.yahoo.com