How did the iPad come about?? In 1968, a famed scientist, Alan Kay conceptualized the idea of a tablet computer, dynabook. The dynabook… a portable notebook sized device capable of displaying text and dynamic graphics with contrast ratios similar to that of a book and also the ability to connect to a high bandwidth network, a plasma screen, and remarkably, a virtual keyboard as well.

Based on these ideas, Steve went to work…. Kay acknowledges that the Dynabook was undoubtedly an influence on Jobs and the development of the iPad Eventually, Jobs approached Kay and asked him if the device was “good enough to criticize.” Kay responded, “Make the screen at least 5″x8″ and you will rule the world.” Note: on January 27, 2010, the iPad was announced by Steve Jobs at an Apple press conference at the Yerba Buena Center for the Arts in San Francisco.

Some specifications you should know… The price of the Ipad is determined by the size of the data space and the presence of the 3G function. The greater the memory space, the higher the price of iPad and likewise, it is more expensive if the 3G function is present. In Singapore, for a 16 GB, 32 GB and 64 GB WiFi-only iPad, it costs $538, $668 and $798 respectively. For a 16GB, 32GB and 64GB WiFi + 3G iPad, it costs $718, $848 and $978 respectively.

So what’s related to the iPad? The iPhone: The iPad is really an “Extension” of the experience users of the iphone current have. This is also Apple’s selling point whereby it is the same machine but with more functions. Since iPad and iPhone are very compatible with each other, the iPad consumers might consider purchasing the iPhone too.

So what’s related to the iPad? Applications available for purchase in the App Store of the iPad. As people purchase the iPad, they would also purchase apps as they would not be able to do anything much with the iPad alone. (The iPad itself comes with essential but limited functions) Hence to maximise and optimize their satisfaction, they would purchase apps in the app store to make their iPad experience more enriching.

So what about the consumers?

Qn: Discuss how recent developments would affect your marketing and pricing decisions for the iPad. From the consumer’s point of view, the factors affecting whether the consumer’s are willing to buy the iPad would be: price of substitutes quality of substitutes. A few words from Dilbert….(Adapted from the straits times)

What Substitutes?? Substitutes for the iPad from other brands: Google (Android) Nokia (Symbian) Samsung (Galaxy Tab)

How do they affect the pricing and marketing decisions? The price of the iPad: determines the willingness of the consumers to buy the iPads. is a gauge for consumers to compare iPads with the other complements (e.g. Samsung Galaxy Tab, etc.). For example, Samsung Galaxy Tab 16GB is sold at a price of $998, while iPad 16GB are being sold at a price of $718, consumers would generally go for the cheaper iPad compared to the Galaxy Tab as it maximizes their satisfaction to the same extent with a cheaper cost. This leads to an increase in demand of iPads.

How does Apple convince consumers to buy the iPad? “But the more book publishers, more magazine publishers, more newspapers, the more video game creators, and textbook companies Apple can pull on board, the more attractive the iPad will become as a one-stop shop for media.” “Apple also sold the idea of how much more convenient it was to buy one iPhone rather than carry a cell phone, an iPod, and a laptop around at all times to achieve the same combination of functions.” Adapted from: html#ixzz1Gfr1NCGDhttp://news.cnet.com/ _ html#ixzz1Gfr1NCGD

How influencial is Apple? “When it was announced the iPad would not support Adobe Flash - used for 70 percent of games and 75 percent of video online - some publishers and developers, along with Adobe itself, cried foulAdobe Flashcried foul “The Wall Street Journal, NPR.org, Nike.com, and TED.com all now offer largely Flash-free versions of their sites for the benefit of iPad users - in most cases also offering something that they didn't before.” Adapted from: apples-darling-spawns-sponsorship-opportunitieshttp:// apples-darling-spawns-sponsorship-opportunities (Published on November 18, 2010 )

Qn: Discuss how recent developments would affect your marketing and pricing decisions for the iPad. Due to the recent increase in the number of functions in the iPad, the following effects occur: What the producers see: More functions in iPad  More attractive to consumers  higher dollar votes for iPad  increase price of iPad while those unable to afford are rationed out of the market  more profit per unit  more profit in the short run  producers increase quantity supplied (iPad)

Examples of increased costs of using the iPad Applications for the iPad will generally cost more than ones for the iPhone or iPod touch developers have said. “They blame the extra work involved in designing for the iPad and the risk factor of not yet knowing how many customers will buy the device.” “Mr Pusenjak is the creator of an iPhone game called Doodle Jump. His two-man developer shop has sold 3.5m units at 99 cents (67p) and will price it at $1.99 (£1.35) on the iPad.” Adapted from:

Qn: Discuss how recent developments would affect your marketing and pricing decisions for the iPad. iPad 2 is coming out very soon (26 th March) in Singapore already launched in US and Hong Kong This is because iPad 2 is way better than iPad: Camera: -Front and rear of iPad 2 -Thinner than that of iPad (8.6mm thick) -Lighter (680 grams, 80g lighter compared to iPad) -Higher screen resolution too The iPad 2 would also be compatible with the iPad and it has better specs compared to iPad itself.

Improvements made to iPad in iPad 2 The iPad 2 has... battery life of up to 10hrs 2 cameras, 1 for FaceTime and another that captures 720p HD video has a dual core 1GHz processor which is much more faster compared to the 1 st generation iPad. 9 times the graphic performance compared to the 1 st gen iPad.

Qn: Discuss how recent developments would affect your marketing and pricing decisions for the iPad. If more attractive or convenient functions for a iPad 2 exist:  consumers derive more satisfaction from iPad 2 than iPad  cast lower dollar votes for product  decrease in price for iPad Meanwhile iPad 2 being equipped with more functions and being more user friendly:  more attractive/satisfying to consumers  cast higher dollar votes for iPad 2  increase in price for iPad2 This happens as consumers want to maximize the satisfaction they can derive from buying an iPad or iPad 2 a certain amount of purchasing power.

Qn: Discuss how recent developments would affect your marketing and pricing decisions for the iPad. Subsequently this would cause:  Decrease in price of iPad  Decrease in profit per unit of iPad produced  Decrease in quantity supplied of iPad In the meantime:  increase in price for iPad2  more profit per unit  more profit in the short run  producers increase quantity supplied of iPad2

Information courtesy of… Acknowledgements: world-fetches-1000-in-hong-kong.ars world-fetches-1000-in-hong-kong.ars ipad /review ipad /review W-Smith-iPad-2-best-tablet-market?odyssey=nav|head W-Smith-iPad-2-best-tablet-market?odyssey=nav|head _pricing_rel.php fourth-quarter-researcher-says.html _pricing_rel.php fourth-quarter-researcher-says.html