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Introduced to the world on 27 January 2010 On 3 April 2010 it arrived in US ’ s apple stores People are able to obtain the revolutionary item by just.

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Presentation on theme: "Introduced to the world on 27 January 2010 On 3 April 2010 it arrived in US ’ s apple stores People are able to obtain the revolutionary item by just."— Presentation transcript:

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2 Introduced to the world on 27 January 2010 On 3 April 2010 it arrived in US ’ s apple stores People are able to obtain the revolutionary item by just buying it with US$499

3 Future for the IPAD? This is due to its demand being price elastic as it is a luxury good, it would lower the price that would result in a more than proportionate increase in quantity demanded, thus increasing overall profit. Hence, relatively lowering price and boosting the demand further, and hence, profit. Its demand is also income elastic, and the growing US economy from the 3rd quarter of 2009 meant that GDP per capita would increase. This would mean that the iPad would be in greater demand due to the increase in income.

4 Future for the IPAD? Products like Apple accessories such as chargers, external battery packs, earpieces and iPad covers are complementary products their cross elasticity of demand (XED) value is a large negative value. As such, as the price of the iPad decreases, the demand for the iPad will rise along with the demand for these products as they are used in conjunction with the iPad.

5 Making the IPAD well known With the popularity of tablets on the rise, its demand will be sure to increase as well. The consumers signal the increase in the demand of tablets by how much they are willing to spend, and allowing the market to grow being the only of its kind in the market, the tablet market now has a plethora of other choices, all of which are substitutes for the iPad.

6 Warning: competitors alert! With increasing competition like samsung galaxy tab, Apple might have to lower prices or market their product differently and advertise the iPad’s uniqueness. This is to decrease the price elasticity of demand (XED) value by making other substitues weaker substitutes.

7 Winner: IPAD! Although there is new competition in the tablet market, Apple does not need to change its marketing strategy much due to the relatively higher prices of these substitute products. –Samsung galaxy- US$599 Apple is able to purchase semiconductor parts at a notably lower rate than other producers, and this gives Apple the ability to have greater output at a much lower cost. Other firms are unable to lower the price of their tablets as doing so would prevent them from covering the relatively higher production costs. Apple has been in the tablet market longer than any of its competitors, and hence it has the experience the other firms may lack. –IPAD-2010 –Samsung galaxy-2011 This gives Apple comparative advantage as they are able to produce their products with the lowest opportunity cost due to having the experience of knowing the best method to.

8 The world’s richer! This results in increased income per capita and greater consumer purchasing power. As the income elasticity of demand (YED) of the iPad is elastic, Apple can choose to produce newer and improved versions of the iPad such as the iPad 2, including newer and more attractive features. Even marketed at the same price and merely one year after the initial release of the original iPad, the iPad 2’s sales will not be adversely affected due to it being a luxury good. Hence, consumers’ demand for newer versions of the iPad will increase due to the current economic prosperity and its high YED value.

9 Its all about location, location, location! The App Store is constantly growing and improving with little or no input from Apple, –dozens of new applications being added into the store each day. This growing and constantly improving platform improves not only the iPad but every iDevice without the device actually being modified. This is something most competitors lack, and are most likely unable to achieve. –Iphone, Iphone 3G, Iphone 3Gs, Iphone 4, Iphone5 (coming soon!) Even if other competing tablets manage to match the iPad’s capabilities, they will be unable to match what the App Store can provide. Hence, Apple needs to market the App Store with every iPad in order to remain above competitors, as it is one of the main factors affecting Apple’s dominance in the tablet and smartphone markets.

10 Discovered by: group 4 Johnathan Qi Ting Jie Ying Ralph Wee heng


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