Demand & SupplyGroup Members: Joel

Shreya Jway

Darrel Wei Xuan Jing Wen

iPAD

What

• A tablet computer announced by Apple Computer, Inc

• It uses a virtual keyboard for text input and runs most iPhone apps.

RELEASE

Click icon to add picture

Apple began taking pre-orders for the iPad from U.S. customers on March

12, 2010

The Wi-Fi + 3G version was released on April 30.

1st Day300000

May 3, 2010 1million

May 31, 2010 2million

June 22 2010 3million

September 30 2010 further 4.2 million

Financial Conference Call, Steve Jobs announced that Apple had sold more iPads than Macs for the Fiscal Quarter.

Determination of $O Producer

O ProductivityO Target profit

O Consumer

O EconomyO Price of

substitutes

Producer

• Better state of technology

• Number of iPads produced/unit time

increases

• Efficiency or productivity increases

• Cost of unit will decrease

• (and vice-versa)

Productivity

An ExampleO Japan

O Major producer of iPad partsO Recent earthquake and tsunamiO Threaten suppliesO Cause producers to decrease

ProductivityO Result in price to increase

Producer

• Producers are profit-driven

• Set prices where they can earn a profit

• Will adjust prices according to the %

profits they want to earn

Target Profit

Consumer

• Changes in consumers’ income(either increase

or decrease)

• Directly proportional to demand for iPads

• Will cause producers to supply accordingly

• Hence determines price accordingly

Economy

Consumer

• Compare prices of the different goods

• Prices compared in terms of monetary and taste and preference

• Egs Samsung Galaxy Tab, Acer’s Android Tablet

Price of Substitutes

Acer’s Android TabletSamsung Galaxy Tab

RelationO Add to the added value of the iPad O Results in an increased cost of the

iPad whether directly or indirectlyO Appealing to the taste of the

consumer, thereby increasing the demand for iPads

Recent DevelopmentsO Technological

O SubstitutesO Eg Samsung Galaxy Tab

O EnvironmentalO Recent catastrophe in Japan

An Overview

Producer Consumer

1. Productivity

2. Target Profits

1. Economy

2. Price of Substitutes

THANK YOU!