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Economics Project. Whendid the iPad firstoriginate?

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Presentation on theme: "Economics Project. Whendid the iPad firstoriginate?"— Presentation transcript:

1 Economics Project

2 Whendid the iPad firstoriginate?

3 Origins of iPad 1983 – Apple Inc. started the idea of a Tablet PC – a portable personal computer with a touchscreen August, 1993 – First series of tablet released, known as the Newton MessagePad series Steve Jobs developed the idea of a multitouch glass screen – applied on iPhone and iPods

4 Origins of iPad 3 rd April, 2010 – the original iPad was released

5 Origins of iPad Aug, 1993 June, 2007 Sep, 2007 3 rd April, 2010 Newton MessagePad iPhoneiPod Touch iPad

6 A 16GB Wi-fi iPad by Apple sells for US$499 Why???

7 Price Mechanism Price of iPad How price is determined

8 Related Goods ComplementsAppsAccessoriesSubstitutes Other Tablet PCs

9 1.Complements Apps (Applications) Games Entertainment Books Business Education Music Lifestyle Accessories Cases Speakers & Headphones Keyboards & Docks Chargers Cables & Adapters

10 1.Complements Price of iPad Demand for iPad Demand for Apps Accessories

11 Cross elasticity of demand (XED) of Apps and accessories with respect to the price of iPad is a large negative integer  They are close complements 1.Complements

12 2. Substitutes Dell Streak 7 Samsung Galaxy TabMotorola Xoom

13 Price of Substitutes iPad comparatively cheaper Demand for iPad 2. Substitutes

14 Cross elasticity of demand (XED) of iPad with respect to the price of other tablet PCs is a positive integer  They are substitutes 2. Substitutes

15 Crude oil Factory(producer) Final products consumer Shall I buy?

16 Recent events in iPad market Civil war in Libya(major crude oil producer) supply Price Crude oil CIVIL WAR before after

17 Price of iPad =D D: Purchasing power (consumer) Total revenue (producer)

18 Luxury goods (iPad) income elastic Consequence: quantity demanded of ipad will fall income demand Income elasticity of demand(YED) Purchasing power(consumer)

19 Recent events in iPad market Earthquake and tsunami in Japan Disrupted Apple's component supply chain Shortages of the iPad For the rest of this month and possibly longer Supply Price

20 Pricing strategy Loss in TR Gain in TR Cutting down the price of iPad leads to a more than proportionate increase in the quantity demanded for iPad and a rise in the total revenue gained.

21 Samsung Galaxy Tab GT-P1000 Viewsonic ViewPad 7 LG Optimus Pad HP touchpad HTC Flyer Motorola Xoom Competitions

22 iPad, Wi-Fi, 16G $ 499 Acer Android powered tablet $ 299 1. Price competitions

23 $ 499 $ 299 Consumer’s view Consumers are more willing to purchase ipads. Quantity demand Qty demanded Price When price drops

24 $ 499 $ 299 Producers are willing to lower the price, in order to maximize TR Qty demanded price When price drops Quantity demandTotal revenue

25 2. Non-price competitions Establishing uniqueness Advertisement. Product development. Promotion activities. Consumers’ taste

26 advertisements http://www.youtube.com/watch?v=R41NNPBqRCk

27 Product development bundling strategy with app. developers and provide various packages for consumers to make choices. games

28 Popularise iPad 10 inches screen multi-core Graphics multi-tasking Apple iPad boasts an entire aluminum body Cater to consumers’ preferences Establish product’s uniqueness

29 Price for ipad luxury goods is always income elastic, which means when there is an increase in real income, there will be a more than proportionate increase in the quantity demanded for ipad and vice versa. Hence, in this case, the quantity demanded of ipad will fall as the real income of consumers drop, ceteris paribus.

30 Bibliography http://blog.appboy.com/wp-content/uploads/2010/06/ipad-app-store.jpg http://cache.gawkerassets.com/assets/images/4/2010/04/epicapps.jpg http://blog.appboy.com/wp-content/uploads/2010/05/ipad-apps.jpg http://images.tathya.net/wp-content/uploads/2010/11/Acer-android-tablet.jpg http://www.theproducersperspective.com/.a/6a00e54ef2e21b883301156ff915d3 970c-pi http://en.wikipedia.org/wiki/IPad http://www.engadget.com/2010/01/26/the-apple-tablet-a-complete-history- supposedly/ http://ipad.org/origins-of-ipad/ http://www.pcworld.com/article/193746/apple_ipad_costs_260_to_build_isuppli _finds.html http://store.apple.com/us/browse/home/shop_ipad/family/ipad/select?mco=MjE 0OTI0MDI http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action.html


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