Demand and
Supply
WEBQUEST
Group 4
Project A
The iPad originated on
the 3rd of April 2010.
another exclusive
product of Apple
gained enough publicity and
consumer awareness
a high demand
• we have to account for the amount of money used in the
production of the iPad.
The casing
the
internal
processors
etc.
Apple
Non-Apple
iPad Cases
iPad Docks

iPad Camera Connection Kit
iPad keyboard
- Convenience;
- aesthetic appellation;
all to ensure our iPad experience is
not shortchanged for the price we are
paying;
The demand of all these products is a
derived demand in part from the
demand for iPad.
Samsung Galaxy Tab
Kindle
Such goods will decrease the demand for iPad
as they are substitute goods.
Question:
Discuss how recent developments would affect
your marketing and pricing decisions for the iPad.
Focus on two factor from the consumer’s point of
view and two from the producer’s point of view.
Recent developments
• Introduction of iPad substitutes
• Many countries recovering from recession
• Short supply of iPad touch-screens
• Expansion of iPad market into China
To the consumers...
o Substitutes likely to cause a fall in demand for iPad.
o When there is a rise in substitutes, such as Android tablets, the
quantity demanded for iPad will decrease.
Price
Price
P1
D1
P2
D2
Quantity
Android
(substitiute)
Quantity
iPad
Hence, price of iPad should decrease to ensure price is comparable to
substitutes. More advertisements should be used to promote iPad.
o Countries like Singapore have experienced economic growth higher
income levels
o Makes iPad more affordable due to higher income
o Producers should lower prices to attract even more as a lower price
complements the rise in income of consumers
To the producers...
o
o
o
o
iPad’s touch screen has been in short supply
Price of touch screen has risen
Production cost of iPad increases
Hence iPad cost must be increased so as to maximise profits
o Apple’s iPad got approval to be
sold in China in August last year
o Market expansion hence
increase in supply of iPad
o Apple should increase its prices
so as to maximize its profits due
to an increase in size of the
consumer market
Producers are should raise their prices for the
iPad so as reach a better market equilibrium
price.
This is seen from the short supply of the 9.7 LED
touch screens of the iPad,
The price of touch screens
, which will lead to
unit cost of production of the iPad.
Hence in order to increase
profits, producers would
raise the price of the iPad.
With thanks to,
http://news.cnet.com/8301-31021_3-10450333-260.html
http://www.bloomberg.com/news/2011-01-31/android-tablets-gain-on-ipadin-fourth-quarter-researcher-says.html
http://www.bloomberg.com/news/2010-11-18/rim-s-rival-to-ipad-wins-fansas-corporate-customers-seek-secure-tablets.html
http://news.bbc.co.uk/2/hi/8603599.stm
http://www.macworld.com/article/153145/2010/08/ipad_china.html
http://www.bbc.co.uk/newsbeat/11863568
http://news.bbc.co.uk/2/hi/8590300.stm
http://www.bbc.co.uk/blogs/thereporters/rorycellanjones/2010/08/kindle_or
_ipad_-_which_will_ch.html
http://en.huanqiu.com/business/industries/2011-01/618170.html
http://www.theipadguide.com/content/ipad-production-problemssamsung-joins-lg/7174625