iPad Market How has the iPad market changed? How will it affect you as an economic student?

Brief Facts about the iPad It has a large screen Camera on both sides to allow facebook video calling etc LED-backlit display for graphic purposes Multi-Touch Advanced mobile operating system Originated in April 2010 (appeared in market)

How is the price of iPad determined? Determined by the interaction of supply and demand curve Intersection between these two curve provides us with the equilibrium point

Gradient of demand curve Many substitutes of iPad available Large proportion of income spent (around $SGD ) Luxury good Demand for iPad is price elastic Gradient - Gentle

Gradient of Supply curve Easily stored Luxury good Easily transported Supply for iPad is price elastic Gradient- Gentle

Graph of price against quantity of iPad Combination of demand + supply curve Intersection at (Q1,P1) P1 is equilibrium price Q1 is equilibrium quantity

Price of iPad determined The intersection between demand and supply curve Demand = Supply Market equilibrium Price of iPad determined by intersection

Related products of iPad Complements (paid applications, iPad cover etc) :D Substitutes (Samsung galaxy tab, net books) D: Different type of relationship with iPad

Complements Products that complement each other and have a positive relation Increase in demand for iPad would cause an increase in demand for paid applications Cross elasticity demand (XED) value is always negative for complements

Substitutes Products that act as sub have inverse relationship with each other Decrease demand for iPad can cause an increase in demand for sub iPad 2, an extremely close sub of iPad XED value is positive

Recent Developments Changing Taste of Consumers (Consumer POV) Earthquake in Japan (Consumer POV) Conflict in Arab Countries (Producer POV) Introduction of iPad 2- Changing prices of related goods (Producer POV)

Changing Taste of Consumers Introduction of iPad 2 Better features (graphic) than iPad Consumer prefer iPad 2 instead Demand for iPad decreases

Earthquake in Japan Severely affected the income of Japan people Necessities become top priority according to Maslow hierarchy of needs iPad is a luxury good Decrease in demand for iPad

Conflict in Arab Countries War in Arab countries increased prices of oil Cost of production increased Total revenue being constant as price is fixed Total profit decreases Supply for iPad decreases

Introduction of iPad 2 Released recently, 11 March in US Better features Consumers cast higher dollar votes for iPad 2 Prices of iPad 2 increases iPad and iPad 2 in competitive supply More resources allocated to iPad 2 Reduces supply of iPad

How does recent development affect marketing and price decisions? Recent developments caused decrease in supply/demand of iPad iPad market reaching saturation iPad market no longer profitable

Life cycle of iPad iPad life cycle stage is near the decline portion Decline occurs due to presence of better products and changes in consumer taste

How does recent development affect marketing and price decisions? iPad market is declining In response, decrease price of iPad Increases the current sale of iPad Marketing iPad would be irrational Presence of better products (iPad 2)

Conclusion Market of iPad is declining Demand for iPad is reducing Producers should discontinue producing iPad Not profitable in the long run Should venture into new markets, (iPad 2 which is profitable now)

Credits portfolio-cover-leather-case-for-ipad/ portfolio-cover-leather-case-for-ipad/ device-useful-for-you.html device-useful-for-you.html cer_cases_in_the_united_states_is_decreasing-id html cer_cases_in_the_united_states_is_decreasing-id html

Thank You! Thank you for your kind attention Hope you understand the iPad market better Have a great day :D