Friday, November 5, 2010

Survey: Apple’s iPad Still Has Huge Demand Advantage


Summary:

Since Apple has launched the iPad in April 2010, there has been a  serious decline in the demand for netbooks. Respondents of the new ChangeWave Survey with the intention of buying a netbook have dropped drastically over the past year. In fact, netbook demand has been dropping steadily since its peak in June 2009 from 20 percent to 14 percent. Although the price of the iPad can be compared with higher-priced netbooks, ChangeWave has found that not only is the demand for this portable device is high, but consumers are also very satisfied with this product. 72 percent replied that they were “Very Satisfied” with Apple’s tablet, while another 23 percent said they were “Somewhat Satisfied” and 0 percent for “Very Unsatisfied.” At this moment, 80 percent of those who are likely to buy a tablet are planning to get an iPad. RIM’s (Research In Motion) Playbook is the next in line for highest demand, but survey shows that only 8 percent of the respondents are choosing the Blackberry solution. If that isn’t enough to convince you, this tablet device is most likely to be on the customers’ wish list as the holiday season approaches.  

Connection:
The factors causing the decrease in demand for netbooks and the increase in demand for iPads in this case would be incomes and tastes and preferences. As the economy is slowly recovering from recession, the income of consumers is generally increasing. That is to say, they would be able to generate more disposable income. The more disposable income they have, the more money they will spend on luxurious items such as the iPad. Even though the price of an iPad is more expensive than a typical netbook, consumers are still willing to pay that much more for this product. In terms of tastes and preferences, Apple has done an extraordinary job on advertising their tablet. The iPad is a light-weight, portable device that has a big, beautiful Multi-Touch screen. This makes web browsing, typing emails, watching a movie, and even gaming a remarkable experience for us consumers. Last but not least, Apple has specifically designed more than a thousand apps limited to the iPad. Those factors alone are enough to turn the heads of a netbook consumer to purchase an iPad as a substitution of a netbook, resulting in an increased quantity exchanged for iPads.

Reflection:

As I have previously mentioned, Apple has done an excellent job in convincing that purchasing an iPad is the better choice. Many people have been affected by this—including myself—which is exactly why the demand of iPads is so high. I personally think Apple is very clever as they know what consumers are looking for. I also think that the demand for iPads is not likely to decrease any time soon because since this tablet has fulfilled many of the consumers’ needs and they are satisfied with this product, it is not likely that they will find an alternative in the future. Thus, they will continue being a loyal customer to Apple. Nowadays, when I walk into our local coffee shops, there is not a time where I don’t see someone holding an iPad. However, I have yet to see someone holding a RIM Playbook in their hands. That means even RIM, Apple’s biggest competitor in the market, is not up to par with Apple. The technology and products from Apple will only improve, and the demand will only go higher and higher.

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