Group1


 * ~  ||~ Student's Post

Group Memebers: Yeo Zhi Zheng He Xin Sacha Ong Evelyn Yeo Bianca Yeoh Sharanyah ||~ Teacher's comments || Since 1983, Steve Jobs envisioned creating a portable computer with a multi-touch glass display. As Apple began developing the prototype, Jobs realized that the concept could apply to mobile phones. Hence, the tablet idea was replaced by the iPhone, which became a resounding success. Development for the iPad continued afterwards, leading to its release in April 2010.
 * ~ Project A || **//When did the iPad first originate?//**

The price of the iPad is determined through the price mechanism. Initially, the quantity of iPads demanded is very high due to hype, with many consumers willing to pay high prices for it. This signals to producers to increase production, as well as charge higher prices to maximize profits. Simultaneously, the iPad has a low production cost, and hence its sale gives a very high profit margin, allowing producers to lower prices should demand fall.
 * //How is the price of iPad determined?//**

Complements include iPad- specific applications, //Pad Case,// // iPad Camera Connection Kit // and the //iPad Keyboard Dock.// An increase in demand for iPads would result in the increase in demand for these complements.Substitutes include laptops and [|Android] based tablets, where an increase in demand of the iPad would lead to a decrease in demand of the substitutes. These products compete with each other.
 * //What are some of the related/associated products for iPad? How are these products related to the iPad?//**

References:[] || Well done for this section. Very clear and succinct presentation of points. =) ||
 * ~ Project B || The iPad’s market changes constantly due to changes in its demand and supply. These changes are attributed to several recent developments, related to either consumers or producers. In our report, we will focus on developments from 2009 to 2011.

In terms of consumer’s perception, their taste and the availability of substitutes will affect the iPad’s demand, hence the decisions Apple makes in its marketing and pricing.

An interesting example would be the change in taste for e-books. The demand for e-books is rising amongst consumers as they find it more convenient than actual books. In 2010, e-books sales reached near one billion dollars, while many schools are experimenting with e-books to replace textbooks. Hence, the demand for e-book readers will increase, causing a shortage in the market due to low supply. Consumers will be willing to pay higher prices for an e-book reader.

To take advantage of this, Apple can enter the e-book reader market, and advertise the iPad as a computer that is also a superior e-book reader, filling the shortage and meeting demand with iPads. It can also set prices to be competitive with other e-book readers, whose limited functions but relatively high prices will cause consumers to switch to the iPad, increasing quantity of the iPad demanded.

Substitutes also play a role in the consumer’s demand for the iPad. The release of the iPad has opened the market for PC tablet devices, allowing competitors like Samsung Galaxy Tab to emerge. These substitutes will reduce the demand of iPad as consumers can switch to these cheaper alternatives. In 2010, Android stole 22 % of global tablet shipments from the iPad in three months.

Apple can combat competition by reducing the iPad’s price sharply. It can still make profits due to its wide profit margin and ration substitutes who are unable to compete off the market. Moreover, Apple can market the iPad to have superior battery life, speed, and complements like apps compared to the competition to attract consumers away from them.

Unlike consumers, Apple (as the producer) focuses on production costs and changes in investments and consumers’ demand, adjusting their marketing decisions and prices accordingly.

Investments are important to Apple as they allow it to obtain resources to produce iPads. However, from 2009 to 2010, concerns over Steve Job’s health led to a drop in Apple’s shares, indicating a fall in investor confidence. This will reduce the amount of resources Apple can attain, and hence the quantity of iPads supplied will fall. Apple can manage this problem by releasing details about Job’s health to boost investor confidence, and hence regain its investments.

Another factor is the rise in production costs. Strikes that led to several suicides in the Chinese company Foxconn have discontinued the supply of iPads. To resume production, the government agreed to raise minimum wages by 20%. This increase in wages means an increase in production cost; hence Apple must also increase the price for the iPad if it wishes to continue earning the same profit.  || Yes, it is important to establish how recent you are looking at.

Valid point but explicitly how does it impact the Dd/Ss for iPads?

Elaborate: This change in consumers' taste will lead to an increase in Dd for e-books and iPads... What happens to P and Q?

And what is the eventual impact on the market for iPads again?

You are suggesting price competition here. What do you mean by "price can fall easily"?

Good.

Yes. Fall in investor confidence so how does this impact production of iPads? Impact on the iPad market?

Valid point but again, what happens to Dd/Ss of iPads?

Very good and apt points mentioned but analysis is incomplete and needs to be drawn to the impact on DD and SS and therefore what is likely to happen to equilibrium price and quantity. Also, could you reference your report accurately using the APA format? || [] ||  ||
 * Overall comments: **
 * ~ Presentation materials || [[file:Presentation1.pptx]]