Recent developments and how it affects Apple’s pricing, output and marketing decision for iPads Increase in disposable income From: http://www.singstat.gov.sg/stats/themes/people/hist/hhinc1.pdf Impact on Apple’s pricing, output & marketing decision iPad is considered as a form of luxury good iPads would have a higher income elasticity of demand (YED> 1). When disposable income more than proportionate luxury goods To maximize total revenue, in demand Output strategy 1. Incease total output production Marketing decision 2. Collaborate with other luxury brands to sell limited edition series of iPads Changes in Taste & Preference of Consumers Consumers are becoming More IT savvy and More choosy with the emergence of new computer tablet products as they now have more alternatives iPads have a unique design which makes it different as compared to other tablets. It weighs only 601g and measures (9.50" x 7.31" ). Its lightweight and compact design allows users to be able to use the product more conveniently. 9.50" (241.2 mm) 7.31" (185.7 mm) Its attractive design further improves iPad’s marketing and popularity to consumers. Apple also did product development to suit the changes in taste & preferences of consumers Development of iPad 2, which have various new features. Multi-Touch Instant On Thinner by 33%, Lighter by 15% iOS 4. The world’s most advanced mobile operating system. Apple is focused on bringing consumer satisfaction 100 80 Improvement in consumer satisfaction till 2010 60 40 Consumer satisfaction in 1998 20 Apple’s product development and innovations increased consumer satisfaction by 24.6% 0 Apple Dell HP Compaq AppleCare Protection Plan for iPads Free iPad engraving Efficient customer support