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EcONS PROJECT. Done by: Zhen Ju , Ivan Koo, Don Tan, Ruthie, Zhe Kai. The iPad. What is an iPad ?. A line of tablet computers designed, developed and marketed by Apple. Size and weight falls between those of contemporary smartphones and laptop computers . What is an iPad ?.
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EcONS PROJECT Done by: Zhen Ju, Ivan Koo, Don Tan, Ruthie, Zhe Kai
What is an iPad? • Aline of tablet computers designed, developed and marketed by Apple. • Size and weight falls between those of contemporary smartphones and laptop computers.
What is an iPad? • Runs the same operating system as the iPod Touch and iPhone—and can run its own applications as well as iPhone applications. • First iPadreleased in April 2010.
What is the price of an iPad? • Price of iPad is determined by the quantity demanded and quantity supplied of it. • High demand ->consumers willing to pay more -> more profits -> increase in supply of iPad. • Approximately SGD$700
Related products of iPad • Includes Amazon Kindle (a portable e-book reader) and Samsung Galaxy Tab (a tablet). • The price of an Amazon Kindle starts at £109 while the iPad at £429. • The iPad can be used as a tablet computer and an e-book reader. Therefore it is being compared with the Samsung Galaxy Tab and the Amazon Kindle.
Factors affecting the price of iPad (Producers point of view) • Cost of production • Logistics costs and dealer’s profits
Cost of production • Silicon chips and flash memory chips make up a large portion of the price. • In the US, a 16 gigabytes memory chip = US$29.50; 32 gigabytes chip =US$59 while the 64 gigabytes memory chips are worth US$118.
Cost of production • The Apple designed the main chip, A4 while Samsung Electronics will build the chip attached with a memory chip for Apple. • Manpower costs also have to be taken into considerations. • Apple will pay US$26.80 for every chip produced.
Logistics costs and dealer’s profits • Eg. Shipping • storage, and • transportation fees.
Factors considered by consumers when purchasing iPad • Price of competing products • Value for money • Market factor • User friendliness
Price of competing products • Consumers would compare prices of similar products and consider if iPad is worth buying. • All have similar functions like WiFi accessibility, touch screen and are light and portable. • Similar products in the market eg. Galaxy Tab, Dell Streak, Archos7 Home Tablet / Archos 9, Microsoft Courier and the HP Slate. • Most are relatively cheaper.
Value for money • Considerations made on whether the applications are necessary for consumer’s private needs. • Determines whether the consumers are willing to pay for their desired applications. • The upgraded iPad with 32 gigabytes of memory space is sold at US$599 but the cost is only US$289.10. Even the high-end model of the iPad only worth US$348.10 yet it is sold at a retail price of US$699.
Market factor • Choice of market would affect sales and prices of iPad. User friendliness • It allows easy web browsing, has a full-size keyboard, easily portable, large and clear screen, good connectivity and wireless functions to headphones and keyboard.
Credits (sources) • http://en.wikipedia.org/wiki/IPad • http://en.wikipedia.org/wiki/IPad • http://www.bbc.co.uk/blogs/thereporters/rorycellanjones/2010/08/kindle_or_ipad_-_which_will_ch.html
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