Charles Edison

"Economics, politics, and personalities are often inseparable." - Charles Edison

Tuesday, March 8, 2011

iPad 2

According to the iPad 2 to Sell Faster Than First iPad: Munster article the iPad2 is predicted to sell over 1 million units faster then the original. The release of the iPad2 in general will be a benefit to the economy. It will produce a stimulant for the economy wether it be big or small a stimulant in this situation is good. What I mean by a stimulant is that it will create spending which is need to help circulate the economic cycle. By spending you are allowing the company to prosper by creating a flow of income. This income can then be invested in newer and better products which could create or maintain many jobs. With these jobs people will be able to lower the unemployment rate if even by the smallest of margins. With this people will get a steady flow of income for there house holds allowing them to live comfortably and eventually contribute to the spending part of the cycle. what people overlook continuously is that it is products like these that can have a bigger impact on the economy. By the release of newer products that people want, they would be willing to spend to get it. But when companies release products that people don't want or need they wont spend money therefore decreasing the flow of the cycle.

7 comments:

Alissa said...

Because this product is highly anticipated, I agree that sales for the iPad 2 will be very high. Also I thouhgt it was very interesting how you tied the sale of iPad's to the benifits the Apple company gets from them. Yes indeed the Apple compnay will be able to continue to produce more products like the iPad and things of that nature. Spending is very necessary, especially with the condition of our economy right not spending is the only thing that can possibly help our economy.

Alison said...

I think another reason the iPad 2 will sell faster than the first is because people were so skeptical of the first one. A lot of people said it was just a big iTouch and it didn't have much use. While some people still think that, there are a lot of people that have been impressed with the first iPad. They may be waiting to shell out their money on the most recent model.

Smith said...

Do you think this one product could really stimulate the economy?

Alex and Maddie said...

Its interesting to think that the Ipad 2 would sell faster than the first one. I guess it does make since that people would wait to buy the product untill the 2nd one came out in order to make sure it all worked like it was planning to. However all the people that did buy the first version of the ipad are most likely not going to buy the 2nd because they already have one. So this leaves out a lot of people who already bought the Ipad.

If the Ipad 2 is prospected to sell faster than the first one then I do agree that it will get some money circulating. However, where does all that money go to? Does it go to Apple employees? Does some of it go to the government? Does a lot of the money go to only a few people? These are all questions to be considered. There is also to be taken into consideration that Apple will most likely, in a few months, come out with more products that are "bigger" and "better".

Catherine G said...

Although i dont really think that the ipad 2 will do much to stimulate the economy I'm glad you made the point of the economic cycle. It seems to be an endless cycle that can either lead to really good things or really bad consecquences. In a time where people dont have extra money to spend companies dont make money and are forced to lay people off which makes people have even less money to spend. Its kind of a mystery how it has been so successful.

Also, i think that Apple is very strategic in how it releases their products. I often wonder if they have the technology to make the ipad 7 but are just holding out by adding it with the hopes that they can raise the price with the release of each version knowing that many people will buy the latest version as it comes out.

kern said...

Does Apple raise the price when they come out with new products?
Why do they come out with new products if they do not raise the price for the new products?

I think it is interesting that you look beyond the affect on Apple. How many of you own accessories to Apple products that are made by another company? Does Apple's innovations offer jobs to people outside of Apple?

Meggan Sher said...

Ipad two obviously would sell faster than the first Ipad, because it’s new and improved. After seeing what the entire first one could do. People knew that the second one would be much better and uses higher technology. Since the first Ipad was such a hit, the second one was going to sell out even faster, and more will be sold. This second Ipad will benefit the economy by allowing Apple to make more and newer Ipads, and other devices. The Demand is only going to increase, and the supply should to. Each time there is a new Ipad; more people will be willing to pay extra for the new one, rather than paying way less for an older version. Although all of them will sell out, more people are willing to pay for the “in” product. Except I do not agree with the fact that making more Ipads will help create jobs. The amount of jobs available probably won’t change much at all. Companies like Apple are trying to make as big of a profit they can. They will still make a profit if they open up more jobs, but it will not be as high, if they didn’t add any jobs. Overall Apple has been successful with their creation of the Ipad and there success will only increase over the next couple of years.