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The iPad first originated on 27th January 2010. It took the world by storm as it was the first tablet computer to be created. The price of iPad is determined based on the other products present in the market, the features of the iPad and as well as the demand for it.
 * ~ Student's Post ||~ Teacher's Comments ||
 * **__ PROJECT A __**

A lower demand will eventually cause the price to be lower to increase the demand and the willingness of the consumers to purchase it.

In addition, an iPad with a larger memory like 32 GB will cost a lot more than that with a lesser memory, 16GB. All iPad have either wifi or 3G installed in them. However, those with 3G will cost considerably more than those with wifi. Reason being the fact that not all places have wifi hence 3G is a more convenient alternative especially for people who travels a lot.Furthermore, the prices of iPad varies in different countries due to the different taxes that Apple charges. For example, Apple charges 7 percent more tax to UK than to US. By having substitutes in the market, the price of iPad must be able to compete with the lower prices of these substitutes like Samsung Galaxy Tab, LG Optimus Pad, HTC Flyer & Motoral Xoom. They must ensure that the consumers will be willing & able to purchase the iPad despite its higher prices due to its good features and performances. iPad also has some of its own accessories. For example, the different types & array of iPad covers from leathers, silicons, to plastics with various colours and designs imprinted on them. iPad also have keyboard & camera connection kit that can be adapted to it when want to be used.Apple iPad are different as they use iTunes, a music player specially designed for Apple products. Consumers are able to download applications, music, videos & movies from the iTunes application store. The Apple applications also cover a wide range of purposes such as entertainment, learning, business, and lifestyle which helps to make life better and easier. || Para 2: Are you sure this is how price of iPad is determined? Read your lecture notes. There is some misconceptions here. Misconception on workings of price mechanism as well.

Para 3: Are these relevant to how prices are determined or how these factors affect the price of iPad.

Para 4: This section only requires you to identify some of the associated products and how these products are related.There is too much detail and you are not answering the question completely || From the producer’s point of view, the price of the iPad is considerably reasonable as compared to its substitute products. Such examples are the Samsung Galaxy Tab which is powered by android and costs about 20% – 30% more. Furthermore, the demand for iPad is greater than its supply to the point that Apple employees are forbidden to own an Apple product so as to meet the demand of the market.
 * **__PROJECT B __**

With technological advancement more iPads can be produced with the same cost price to meet the demand. However, if increase in demand greatly exceeds advancement in technology the price of the ipad thus have to be increased so that only those willing and able to pay would get to own an iPad. With the increase in demand, cost of production would also increase to cater to the market demand as more iPads would have to be produced within a shorter period of time. For Apple to garner the same amount of profits, the price of the iPads would thus have to be increased.
 * In terms of pricing decisions, cost of production and state of technology plays a part in determining the price of the iPad.**

 For marketing, it can be done through comparison of iPad and its substitute products. For example, the iPad is better than the android by the fact that it is more user-friendly and has a huge range of products specially created for it plus more secure applications. Furthermore, social pressure can be used for marketing as people tend to desire what others have. Apple can also use the word of mouth and the internet to publicise the iPad through fans of Apple products.

The recent developments do affect the pricing and marketing decisions for the iPad. From consumers’ point of view, the pricing decisions should be based on the price of the product, income, price of substitutes, price of complements, taste, consumers’ expectations and government policies.

Consumers signal changes in demand to producers through prices that they are willing to pay. The iPad is affordable to most consumers. They will pay for this good that maximizes their satisfaction. Apple will ration iPad to those who are able and willing to buy. They will supply this good as long as it maximizes their profit. Apple will signal changes in supply to consumers through prices that they are willing to accept. The cost of an iPad is about $500. This is actually 2 to 3 times what consumers are willing to pay. Hence the income of consumers affects the demand for iPad as they may be willing but NOT ABLE to afford the product.

Consumers would also expect producers’ pricing decisions to be based on price of substitutes. They would expect producers’ pricing decisions to be similar to the price of substitutes. Consumers would compare the price of similar products before making their decisions that would maximize their satisfaction.

Recent developments include the release of iPad2, which would directly affect the price of the iPad, as consumers would now demand for better technological advancements with a similar price. As such, it would be impractical for the iPad’s price to remain, as consumers would obviously purchase the newer product. Hence the price of the less technologically advanced iPad would not compete with the newly released iPad2.

The marketing decisions from consumers’ point of view are taste and price of complements. Consumers would expect producers to market their product based on their taste and preferences, to attract them to buy the goods.

Consumers would expect producers to market products based on the availability of complements. Consumers would be more willing to purchase a product if complements can provide them with additional functionality and productivity, for example, the iPad has an application store that enables consumers to download and purchase applications to further enhance their usage of iPad. || Para 1: Is this point about price of substitute? What is the main point here? Is it needed?

Para 2: Pricing decision is not affected by any factors. It is something that the producer do AFTER the market equilibrium price and quantity is attained. To the supplier, they do not increase their production to meet the demand, that is not their objective. This paragraph does not really make economic sense. Re-work it. Your concepts are not clear. It is okay to talk about tech advancement but the link is incorrect. Your conepts are not clear. __I need your group to first know what ir the requirement of the project. If you have been listening in class, you should know how to do it.__

Para 3: Marketing decision is not affected by any factors. It is something that the producer do AFTER the market equilibrium price and quantity is attained. Secondly, the main idea of the factor is not comparison of the products. You are referring to a marketing strategy but what is it called. If you are trying to sell your uniqueness of the product, what do yuo call that. Rephrase your points

Paragraph 5: What is this about? Is this needed? If you are talking about a demand factor then how does income affect? is there evidence?

Para 6: Your analysis is wrong. Consumers do not have such expectations. Equilbrium price is determined by demand and supply factors. If the factor here is price of substitutes then what is affected? What strategy can producer do?

Para 7: This is not a Gp essay. You need economic analysis. What is the main point here? is it about substitue or something else? With more substitute for iPad, PED is affected.

Para 8:marketing decision is only made by producers

Para 9: consumers do not expect such things. Marketing of product is a decision by producers. Is this point about taste and preference as well? || WHERE IS THE BIBLOGRAPHY?

Group Members: Cassandra Huiyen Eunice Afini Jiahui Joel