Factors that Impact Demand for an iPad

Category: Ipad, Microeconomics

Last Updated: 20 Apr 2022

Pages: 1 Views: 933

Internal: Pricing decisions Unique features (Apple's iPad was one of the first tablet to have the app world where user can download applications such as games or books and use it right away after download has been completed. ) External: Availability of competitors' products Price of substitute products Incomes of potential customers There are several essential factors that impact the demand for iPads, these are: price of the product (internal variable), price of substitute products, and incomes of otential customers (external variables).

As the primary principle of the demand function stated, that if price of a certain product or service increases, the quantity of that same product will decrease. Most, if not all, customers make their purchasing decision of a product based on its price (all other things held constant). If there are two similar products but one is more expensive than the other, it is rational to choose for the cheaper product. Now, how can an expensive product such as iPad still reate a lot of demand in the market?

The answer that I could think of is product uniqueness and product loyalty. When Apple's iPad first came out in 2010, this product was not cheap. But it was due to its unique features that the competitors did not have that made iPad successful. Today, there are a lot of tablets that have about the same features as the iPad and offer a lower price. I would say that product loyalty is also one of the reasons why there are still demands for 'Pads.

Order custom essay Factors that Impact Demand for an iPad with free plagiarism report