The Ipad was announced on the 27 th January 2010 Released on 3 rd April 2010 3million copies were sold within the first 100days of its release
iPad has similar functions to laptops and similar operating system as the iPhone To attract customers it has to be set at a reasonable price Price is also determined by the consumers Base model’s release price was $499
Complements iPad Camera Connection Kit iPad case iPad keyboard Headphones
Substitutes Motorola Xoom Blackberry Playbook Samsung Galaxy Tab Amazon Kindle
iPad camera connection kit- helps to import photos and videos from a digital camera to an iPad. iPad case- helps to provide the structure and can even be a stand that holds iPad at an ideal angle. New devices(substitutes) introduced poses a threat to iPad They have similar appearances Some of these devices have features and functions that iPad doesn’t have
Market for iPad has been expanding greatly. Increasing number of competitors Blackberry and Samsung launching their own tablet PCs to compete with Apple Apple has to sell iPad at a competitive price so that it can compete with the other brands
Increasing number of substitutes for the consumers to choose from Price of substitutes cheaper than iPad Blackberry Playbook & Samsung Galaxy Tab costs US$399 while Apple iPad costs $499 More consumers maybe attracted into buying the substitutes since the functions of these tablet PCs are similar Lead to fall in demand for iPad
Budget 2011revealed that unemployment level is low and income of Singaporeans have risen Consumers able to cast higher dollar votes More able to afford normal goods such as iPad Service providers in Singapore have bundle 3G data plans for iPad Makes iPad more attractive and affordable Demand for iPad increases
To ensure that consumers will continue to buy iPad, price of iPad has to fall Fall in price leads to increase in quantity demanded for iPad and a decrease in the demand for the substitutes
More shops selling iPad More competitions putting the iPad as one of its prizes Producers have to produce more iPad to meet the demand Increase in supply of iPad
Apple have to be more updated in the technology to stay ahead of their competitors New firms are coming into the market with new devices that have more functions and using advanced technology Apple has to improve the iPad by updating its software and introducing better applications If not more consumers will turn to the substitutes Decrease in demand for iPad
Therefore, Apple must always be aware of its competitions so that they’ll be able to maintain its profits as well as satisfying the market and themselves.