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Atlas’ Lemon Analysis of iPad market.... Introductory Video.

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Presentation on theme: "Atlas’ Lemon Analysis of iPad market.... Introductory Video."— Presentation transcript:

1 Atlas’ Lemon Analysis of iPad market...

2 Introductory Video

3 First Generation iPad

4 Launched on 3rd April rd post-PC blockbuster by Apple Inc. Sold almost 15 million iPad in 9 months Generated sales revenue of USD$9.5 billion (April - December 2010) Fastest-selling consumer product in history

5 How is the price of iPad determined?

6 By the interaction between the demand and supply curve

7 Demand The quantities of a product that consumers are willing and able to buy at various prices, ceteris paribus

8 Supply The quantities of a product that suppliers are willing and able to sell at various prices per period of time, ceteris paribus

9 Related/ Associated Products

10 Substitutes Alternate products to iPad Competitors for market shares Price of substitutes affect iPad’s demand Closer the prices, the greater the change in demand for iPad

11 Complements Used jointly to satisfy some particular wants and needs Eg. Accessories, Applications, AppleCare Fall in price of complements will lead to the increase in demand for iPad Closer the goods are as complements, the greater the change in demand

12 USD$79

13 Recent Developments Foxconn increased in wages Development of substitutes Natural disasters Improvement in economy

14 iPad 2

15

16 Launched in USA on 11 March 2011 Thinner (8.8mm) Lighter (601g - 613g) Cameras Faster Processor Available in WHITE!

17 Producer’s Point of View

18 Cost of production Decrease in demand for iPad Gotten feedback from first generation iPad Advertising Producer’s Point of View

19 Cost of production Decrease in demand for iPad Gotten feedback from first generation iPad Advertising Producer’s Point of View

20 Foxconn Increased wages 2 times in less than a week 30% first Then, 66% performance based pay rise

21 Natural disaster Delay in the launch of iPad 2 in Japan Apple Japan’s factory 8.9 earthquake - 11 March key components said to be made by Japan’s Apple Factory Insufficient materials

22 State of Technology Improved since the first-generation iPad Thinner, Lighter More features iSuppli estimates the cost of material of: - iPad (3G, 32GB) - USD$320 - iPad 2 (3G, 32GB) - USD$326.60

23 Cost of production Decrease in demand for iPad Gotten feedback from first generation iPad Advertising Producer’s Point of View

24 Decrease in demand for iPad Appearances of substitutes Competitors

25 Cost of production Decrease in demand for iPad Gotten feedback from first generation iPad Advertising Producer’s Point of View

26 New features Installed to the iPad 2 Cameras Linking of Apple’s products FaceTime - Video Call

27 Cost of production Decrease in demand for iPad Gotten feedback from first generation iPad Advertising Producer’s Point of View

28 Advertising “Free” advertisement for Apple’s products By reviewers, reporters Simple, neat, elegant High quality product

29 Consumer’s Point of View

30 Income Price Distribution Taste & Preferences

31 Consumer’s Point of View Income Price Distribution Taste & Preferences

32 Income Non-price factor -- Affects demand Economy recovering from economic downturn Income increases More disposable income Assuming iPad to be a normal good

33 Consumer’s Point of View Income Price Distribution Taste & Preferences

34 Price USD$499 for iPad 2 entry level First generation iPad dropped USD$100 Appearances of substitutes iPad’s demand decreases Price is supposed to decrease as well to achieve equilibrium price

35 Consumer’s Point of View Income Price Distribution Taste & Preferences

36 Distribution Distribute (sell) their products Ease of purchasing Apple’s products Apple’s 3 main channels Apple Online Store Apple Stores Resellers - eg. epiCentre

37 “One of the things that enabled us to roll out this technology so fast was our Apple Retail Stores... educate customers... without these Stores, I don’t think we would have been as successful either” - Steve Jobs, Apple KeyNote 2nd March 2011

38 Consumer’s Point of View Income Price Distribution Taste & Preferences

39 Product

40 Brand Safety & Security Features Peace of Mind Accessories and services

41 Thank you for your ATTENTION


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