Question

Apple Inc's research and development of its iPod helped it eventually develop the iphone (the first one released in 2007), which in turn eventually helped develop the first iPad, which was first produced and sold in 2010. How did Apple's introduction of iPads affect its costs? Explain using concepts (short/long run costs,cost/volume profit analysis)

Answer 1

Apple has had incurred largescale costs related to copyrightsand patents, designand innovation, research and development and most importantly marketing and mass ad rtising using 360 degree marketing approach which causes rhe quality and aesthetics of brand to be premium.

The rising costs thus got rationalised once ipad was launched as larger volumes got penetrated in new territories where iPhone was hit and need for bigger screen size devices was created which got fulfilled using globalisation standardisation approach and economies of scale. This helped to drive scalability and rampup productuonand distribution and thus costs got submerged paving way for higher profitability and proliferation in new markets as buzz demand. The long run costs thus got minimised as short run costs were high and were duly capitalized.