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The Price Elasticity of the Ipad

In: Business and Management

Submitted By akooni
Words 493
Pages 2
The Apple iPad and the price elasticity equation: An iconic brand, born from the image of a fruit. Who said money cant grow on trees like apples do? For Steve Jobs, the CEO of Apple Inc, building the largest consumer base in the industry and the most innovative products on the market was the main target, that he had evidently been achieving since the phenomenal launch of the iPod in 2001.

The iPad a new generation of tablet computers that are set to replace laptops, books, and revolutionize the technological industry. It was released on April 2010, and sold more than 3 million units in 80 days. The great amount generated from the sales, isn’t a surprise to many, as Apple had a clear strategy, which was already in operation years before the launch of the product. Apple had announced years ago regarding the release of the iPad, in order to stir up hype and increase the demand of the product, which they did with great success. Apple however, never enclosed any information about the price range the product was going to be in and speculations about the price of the increased in the market. Due to the very high specifications of the product and the features it was meant to include, it was estimated at $900 plus. Since Apple sold a vast amount of units on the first day of the launch, the price elasticity of the product is worth thinking about. Apple had released iPad’s that were ranged way below the estimated speculated market price, and consumers were flocking infront of stores and ordering online. One questions however, are those people just typical Apple devotees? Who buy everything Apple launches regardless of the price?

According to an Apple senior executive “We believe first day iPad sales (300K + units) are a measure of brand loyalty among Apple devotes, who would buy virtually anything bearing that magical fruity logo, For others it will take time to...

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