Gulliver Team’s Findings(11S415)

Market For IPad

Overview of our Findings•Origins of IPad•Determination of IPad prices•Related Goods•How some Price/Non-Price factors affect Supply and Demand for IPad

The Birth of IPadAnnounced on 27th January 2010

By Steve Jobs

At the Yerba Buena Center for the Arts in San Francisco

Calculating IPad Prices

16 Gbyte Wi-Fi Apple IPad

Individual Components within the IPad Cost $250.60

Total Cost is $259.60

Archos 9•$550•60 GB•1.3MP Camera•5-hour battery life•Smaller display screen

Motorola Xoom•$600 - $800

•32 GB•10-hour battery life

•Dual Camera: 5MP (rear) & 2MP (front)•Slightly bigger display screen

Apple Digital AV Adapter

Display what’s on the iPad on a bigger screen

iPad Camera Connection Kit

•import photos and videos from a digital camera: using camera’s USB cable or directly from an SD card.

Consumer’s ThoughtIncome of Consumers

oIncrease in income Consumers more willing and able to buy IPad Demand for more IPad (normal good) Demand curve shifts Rightwards

oAnd Vice Versa

Consumer’s Thought

Taste and Preferences

oIncrease of preference for IPad Higher Individual demand for IPad Rightward shift of the Demand curve

oAnd Vice Versa

Price of IPad

0 Quantity

D1 D2 Rightward shift of demand for IPad (due to both increase in income and taste and preferences)

Demand Curve

Producer’s Thought

Government Policies

oHigher Ad-Valorem Tax Higher cost of production per unit Lower supply of IPad Leftward shift in supply curve (S0 to S2 below)

oAnd Vice Versa

Producer’s ThoughtIncreased number of sellers

oHigher number of sellers increase in supply of IPad as more firms produces the IPad Rightward shift of supply curve (S0 to S1 below)

oAnd Vice Versa

Producer’s ThoughtState of Technology

oAdvanced technology More efficient use of resources Increased output per unit of IPad at each possible price Increased supply of IPad Rightward shift of supply curve (S0 to S1 below)

oAnd Vice Versa

Price of IPad

0 Quantity

Pe

S1 S2S0

Q1 Q2Q0

Supply Curves

Producer’s ThoughtChange in the price of the good itself

oDemand for IPad increases Price of IPad increases Output per unit increases in the short run

Firms increase price of IPad to cover increased cost of production outward shift of supply curve (Below)

oAnd Vice Versa

Supply CurvePrice of IPad

Quantity0

P1

P2

Q1 Q2

S

http://www.apple.com/ipad/from-the-app-store/http://www.apple.com/ipad/features/

http://en.wikipedia.org/wiki/IPadhttp://www.motorola.com/Consumers/US-EN/Consumer-Product-and-Services/Tablets/ci.MOTOROLA-XOOM-US-EN.alt

http://www.tgdaily.com/hardware-brief/48287-there-are-products-that-hope-to-beat-the-ipad

http://www.ipadforums.net/ipad-general-discussions/209-ipad-vs-archos-9-a.html

http://www.isuppli.com/Teardowns/News/Pages/Mid-RangeiPadtoGenerateMaximumProfitsforApple,iSuppliEstimates.aspx

http://en.wikipedia.org/wiki/Ipadhttp://www.google.com.sg/images

Sources:

iPad Death Watch

CNN Money Article http://www.associatedcontent.com/article/2834600/apple_ipad_sells_out_demand_exceeds.html

http://mashable.com/2010/01/27/9-upcoming-tablet-alternatives-to-the-apple-ipad/\http://www.customs.gov.sg/leftNav/trad/Valuation+Duties+and+GST.htmhttp://asiancorrespondent.com/37156/iphone-usage-across-asia/http://www.wired.com/gadgetlab/2010/09/first-look-samsung-tablet/http://www.bloomberg.com/news/2010-11-18/rim-s-rival-to-ipad-wins-fans-as-corporate-customers-seek-secure-tablets.html

http://www.bridgat.com/files/Apple_Ipad.jpghttp://iphone5newsblog.com/wp-content/uploads/2011/02/ipad-600x400.jpghttp://www.youthinmind.sg/uploadedImages/Content/Youth_Chat/Blogs/Double_Sides/iphone-ipad.jpg

http://www.dailybloggr.com/wp-content/uploads/2010/11/Samsung_Galaxy_Tablet.jpg

http://www.gnagri.net/wp-content/uploads/2010/07/Acer_tablet-PC.jpghttp://exploreredia.com/iPad-2-release-date-features-price-and-pictures-2011/http://app.singaporebudget.gov.sg/budget_2011/default.aspx

Sources:

Gulliver’s Awesome TeamMembers:

Ronnie Tan Vernon YeoXin Horng

Vincent LowHan Chong

And That’s the end of Gulliver Team’s

Findings on IPad!

Thank you for your attention