Done by: Valerie, Hanan, Linus, Edward, Samantha,
Cherie
•Cost to make – S$415
•Price is determined by what the market is able
and willing to pay (iPad 2nd gen. Costs the same as
the 1st gen. Which shows that that is the price
customers are willing to pay) and the price of their
rivals eg. Samsung Galaxy Tab, Microsoft Courier,
HP Slate…
Apple's first tablet computer was the Newton
MessagePad 100,introduced in 1993, which led to the
creation of the ARM6 processor core with Acorn
Computers. Apple re-entered the mobile-computing
market in 2007 with the iPhone.
When did the iPad first originated?
(Continued)
Smaller than the iPad but featuring a camera and
mobile phone, it pioneered the multitouch fingersensitive touch screen interface of Apple's iOS mobile
operating system. By late 2009, the iPad's release had
been rumoured for several years. The iPad was
announced on January 27, 2010, by Steve Jobs at an
Apple press conference at the Yerba Buena Center for
the Arts in San Francisco
Release dates for the iPad
• April 3 2010 - America
• May 28 2010 -Australia, Canada, France, Spain, Italy,
Japan, Switzerland and United Kingdom.
• July 23 2010 – Singapore, NZ, Mexico, Austria,
Holland, Ireland...
• September 17 2010 – China
• November 30 2010 – Malaysia, South Korea
1.
iPad keyboard dock- It is used for charging the
Ipad. This includes a full-sized keyboard which
allows the user to use special keys to activate ipad
features. The dock has a rear dock connector port
which lets you connect to an electrical outlet using
the USB power adapter ,sync to your computer and
use accessories.
2.
3.
4.
5.
6.
Ipad case – used for carrying Ipad around. Acts as a stand that
holds Ipad at an ideal angle for watching videos and slide
shows
Ipad camera connection kit – able to import photos and
videos from a digital camera : using cameras, USB cable or
directly from an SD card
Ipad dock – for syncing or charging and an audio line outport
for connecting to power speakers via an optional audio cable
Ipad low USB power adapter – charge Ipad directly through
an electrical outlet
Ipad dock connector to VGA adapter – watch slide shows
and movies on the big screen by connecting Ipad to a TV,
monitor, projector or LCD display that uses a VGA connector
7. Apple in-ear headphones with remote and
microphone– used for hearing music and adjusting volume
8. Apple composite AV cable –watch Ipad videos on a big
screen with full stereo sound by connecting Ipad to the
composite video and stereo audio inputs on television or
home theatre system.
9. iPad apps -The iPad syncs with iTunes which sells pared
down versions of Pages, Numbers, and Keynote apps in the
App Store. The iPad has lots of third party applications
available for it; as of September 1, 2010, there were 25,000
iPad specific apps on the App Store.
How does the recent
development affect the
marketing and price decision
for Ipads? Project B
1ST view point based on the PED of
Ipad
 Price Elasticity of Demand will assist the firm
in selecting an appropriate pricing strategy
that will help to increase total revenue. Ipad
is price elastic based on the following
factors.
Factors affecting Price Elasticity Of
Demand(PED) of Ipad
1.
•
2.
•
Availability of substitutes?
Yes, Android Tablets & Acer Galaxy Tab.
Proportion of income spent on iPad?
A large proportion of income spent on Ipad , the
cheapest version of the iPad, which only has Wi-Fi
connectivity and 16 gigabytes of memory, costs
$499 in the U.S while Acer plans to introduce an
Android powered tablet in April that will likely sell
for as little as $299.
Factors affecting PED of Ipad
3. Time.
• In a long run, the price of ipad will become price
elastic with more developments for alternative.
• “Android tablets will further pare Apple’s lead in
the first half of 2011, Strategy Analytics predicts.
"If you were to ask me in two years time, will
Apple have less than 50 percent of the global
tablet market, I think that’s a certainty,"
Mawston said.
Factors affecting PED of Ipad
4. Is iPad a luxury or a necessity?
• Ipad is a luxury good, therefore, the PED is
higher. It is not essential for survival thus people
might reconsider buying an Ipad as the price of
Ipad rises.
Conclusion based on the Factors
affecting PED of Ipad
•
•
•
Since the demand for Ipad is price elastic, producers
should lower the price of the good in order to increase
total revenue.
This is because a fall in the price of the good will lead
to a more than proportionate increase in the quantity
demanded.
Hence, for producers of Ipad, which is a luxury good;
which has a number of substitutes; and makes up large
revenue of the total expenditure should lower prices in
order to increase its revenue.
2nd view point based on the Cross
Elasticity Demand (XED) OF iPAD
Why use XED to base our view?
• Because the XED of Ipad will assist Ipad
producers in deciding what pricing and marketing
strategies it could take in response to an action
taken by a rival or complementary firm.
How the XED of iPad affects
marketing and pricing decisions?
 If the XED for Ipad with respect to the price of Android tablet
and Galaxy Tab is a high positive value (i.e close substitutes), then
Ipad producers must keep an eye on pricing policy of its
competitor.
 Scenario 1: Android Tablet and Galaxy tab producers decides to
lower its price to increase its sales.
 Option 1: Ipad producers may have to lower its price just as much
to ensure that its revenue is maintained.
 Option 2: Ipad producers can adopt non-price competition to
maintain its sales in response to a fall in price of Android Tablet
and Galaxy tab
Non price competition strategies
• Advertising
• Product development [The number of online rumours about
Apple's 'iPad 2' has jumped after a Chinese newspaper
revealed what it claimed are details about the device. There
will be two new cameras, one at the front and one rear
facing plus a USB port and an improved display screen.]
• Promotion activities which aim at establishing in the
consumer’s mind the uniqueness of Ipad. [And since Apple is
arguably first to this new touch-screen Web tablet market,
they have to create loyalty to their version of this new device
type before the others.
CONCLUSION BASED ON XED OF
IPAD
Since, the Ipad is facing competition from other tablet devices,
producers should:
1. Adopt non-price competition to maintain its sales in response to the
lower prices of the other tablet devices using marketing strategies
such as:
• Advertising
• Product development
• Promotion activities which aim at establishing in the consumer’s
mind the uniqueness of Ipad
CONCLUSION BASED ON XED OF
IPAD
If successful, it will increase the demand of Ipad and its price may
become more price inelastic. This will cause both the price and
output to rise and hence the revenue of the producers.
2. Or the Ipad producers can lower its price just as much to ensure
that its revenue is maintained.
1ST point of view based on the consumer’s use of
the ipad
What do consumers think of the price of Ipad?
• Basically, consumers think that the iPad is too overpriced as
it is nothing much other than a bigger version of an
iphone/itouch or a smaller, more compact version of a
wannabe notebook/laptop.
 Why?
• There are close substitutes to Ipads such as the Android
tablet and Galaxy Tab. Given the closeness of substitutes and
the variety of other choices in the tablet pc market,
consumers are inclined to feel that the Ipad is too overpriced.
Comparison of price of IPAD WITH
OTHER E-Readers
From left to right: Ipad, JooJoo, Kindle, Sony Reader, IRex and Barnes&NobleNook
Extract taken from Kindle or iPad: Which will
change reading?
 The latest Kindle by Amazon is smaller and cheaper
than previous versions but built very much along the
same lines- it aims to be just an e-book reader rather
than an all-purpose entertainment gadget like the
Apple iPad. Amazon's strategy is to appeal to people
who simply want to read without any flashy extra.
 What's more, a quick comparison between Amazon's
Kindle store and Apple's iBooks store appears to show
that Amazon wins hands down on the price and
availability of titles. And of course, there's a yawning
gap in prices when you compare the hardware - the
Kindle starts at £109, the iPad at £429
Conclusion based on the
consumer’s use of the iPad
 Since consumers get to choose which E-Reader to buy from a
number of producers and think that the iPad is too overpriced. The
producers of iPad should:
1. Lower its price of iPad to increase the sale of iPad and ensure
that its revenue is maintained.
2. Marketing strategies should focus on the how an iPad is different
from other E-Readers and iPhone/iPod to convince more
consumers to buy their products as they would feel that the iPad
is most useful to them among the rest.
 This will help to increase the revenue of the producers as they
would be able to sell more units of iPad
nd
2
point of view of consumer
based on the income of consumers
Rising income of consumers:
• Our economy has done exceptionally well in the past year. After
two weak years in 2008 and 2009, when growth was close to zero,
our GDP grew by a record 14.5% in 2010
• The Government expects Singapore’s economy to grow by
between 4% and 6% in 2011. This is still above our estimated trend
growth of 3% to 5% for the next 10 years, and reflects the
continuing momentum in the economy.
As we can see, Singapore’s economy is generally doing well with
positive developments and this reflects the rising income levels of
Singaporeans. Thus, they would be more willing and able to
purchase luxury goods such as the Ipad.
Conclusion based on income of
consumers
 Therefore, as iPad producers, marketing decisions
such as advertisements and promotion activities
should be targeted at the working population. This is
because, as the income of these consumers is rising
and hence the demand for iPad will rise for them as
they are more able and willing to purchase the good.
Bibliography
• http://www.singaporebudget.gov.sg/budget_2011/pa.html#s1
• http://www.bloomberg.com/news/2011-01-31/android-tablets•
•
•
•
•
•
gain-on-ipad-in-fourth-quarter-researcher-says.html
http://www.bbc.co.uk/newsbeat/11863568
http://www.macworld.com/article/153145/2010/08/ipad_china.
html
http://news.bbc.co.uk/2/hi/8603599.stm
http://www.bloomberg.com/news/2010-11-18/rim-s-rival-toipad-wins-fans-as-corporate-customers-seek-securetablets.html
http://www.bbc.co.uk/blogs/thereporters/rorycellanjones/2010
/08/kindle_or_ipad_-_which_will_ch.html
http://www.answers.com/topic/ipad-technology