1. Economics iPad Research

2. US market: April 3, 2010 Internationally: May 2010

3. 1.Through Demand Price and non-price factors affect demand of iPad. Example, when the price of iPad increase, quantity demanded for iPad will decrease while when price of substitutes decrease, demand for iPad will decrease.

4. 2. Through Supply Price and non-price factors affect supply of iPad. Example, when price of iPad increase, the quantity supplied will increase while when state of technology become more advanced, supply of iPad will increase.

5. Hence, the price of iPad is determined by the interactions through demand and supply.

6. Cover Stand Keyboard dork iPad Dock

7. iPad 10W USB adapter tv and video connectors iPad protector speakers(portable/ non- portable) Laser Pico projector

9. Andriod tablet costs $299 and iPad costs $499 when both products satisfy the same demand (basic feature and internet connectivity). Hence, consumer would purchase tablet PC instead. PRICE OF SUBSTITUTES Effect: Selling price of Ipad would be slightly lowered to compete with tablet PC

10. Ipad provides a more applications than tablet PC hence provides maximum satisfaction. However, tablet PC contains features such as Flash and multitasking capabilities which is superior to that of iPad. Thus, consumers would prefer tablet PC over Ipad. TASTE Effect: The way of marketing of Ipad would be centered on attracting consumers via the variety of applications that will provide consumers maximum.

11. Price of the product An increase in the price of iPad will increase the quantity supplied of iPad. The prices of each iPad have been cut by $100. Thus, the quantity of iPad being supplied will fall as well. Effect: iPads would be heavily discounted. When the price falls, more people are willing and able to buy, and as the target crowd expands, more people would be influenced to purchase iPad.

12. Changes in the number of sellers An increase in production of iPad is reported with increasing demand as Apple ramps up iPad production drastically. Apple will continue to dominate the tablet industry. Effect: iPad will continue to be heavily demanded if prices does not rise. For maximum profit gain, producer would not increase the price. Also, less consumers will be willing to pay.

13. - http://www.apple.com/pr/library/2010/03/05ipad.html -http://www.quora.com/Why-are-the-2011-iPad- competitors-priced-higher-than-the-iPad

14. Done by: Eunice Yi Ling Julia Afshin Aaron Teck Hui 11S301