Origin of the ipad
Originated in January 2011
Released in April in the same year
How the prices of ipad is
determined???

Demand and supply

Taking other variables constant,
--demand increases, supply increases
--demand decreases, supply decreases
What causes changes in
demand???

Consumer income

Taste

Government legislation

Consumer expectation

Prices of substitutes

Prices of compliments
Factors affecting supply

Cost of production

State of technology

Price of related goods

Government policy
Associated products

International plug that can be used
worldwide

USB port for computer

Car charger so it can be changed on the
move
How recent developments affect
marketing and pricing decisions?
------------------Competition----------------
Microsoft and Nokia partnership to make a
joint product

Consumers switching to windows mobile
platform

More money invested by apple in R&D

Ensure that products are ahead of
competitors

Buying an apple ipad has better marginal
benefits than other products

Ensuring marginal benefit is higher than
marginal cost

More people will continue buying apple
products

Demand and quantity increase

Price increase

Higher profits
Cost of resources

Apple looks to expand its market

Pushes PPC out

New production facility would be built

Cost of producing one ipad increase as
mortgage and workforce needs to be paid

More advertising needed

Company’s budget increase

Generate more profits to pay off budget

Price increases
Switching to substitutes

Improved version of windows mobile out
in 2012

New product will have new functions

Certain consumer prefer the functions in
windows mobile

Less people buy ipad

Demand drop, supply drop

Decreasing prices means lesser money
earned
High prices

Due to new technology, prices goes up(as
mentioned earlier)

Some consumers were unwilling or unable
to pay

These people are rationed out of the
market

People wiling and able to pay continue
paying

Overall quantity demanded decreases,
quantity supplied decreases

Producers produce lesser ipads as the
sticks are in surplus

Quantity demanded drop is unhealthy sign
to business

http://mashable.com/2010/01/27/9upcoming-tablet-alternatives-to-theapple-ipad/

http://tutor2u.net/business/marketing/bu
ying_decision_process.asp

http://www.knowthis.com/principles-ofmarketing-tutorials/pricingdecisions/internal-factors-costs/