Price of Tablet Computers in UK Essay

Price of Tablet Computers in
UK

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Factors that help in determining price of tablet computers in UK..............................................1
Factors that determine price of tablet in free markets:................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Technology is continuously developing in the economy. It has now become life blood in
the growth of economy. The Highest advancement of technology can be seen in the industry of
computers. From the past 10 years, every year the latest technology computers come in the
market and become obsolete after few years, therefore change and development has both positive
and negative impact on the economy. These impacts can be clearly seen in the economy of UK.
More than two third of the population of UK is using and has become dependent on computers.
The latest advancement in computer industry is tablets. These small tablet computers can
perform almost every task that a large computer can perform and also have an advantage of small
size that can be easily carried anywhere. The present report is based on the price of tablet
computers in UK. Various factors that helps in determining the price of tablet computers in
market and free market is focused discussion of this report. Further, market share of table
occupied by different vendor has been graphically presented and also the reasons behind decline
in the prices with increase in demand are described.
TASK 1
Factors that help in determining price of tablet computers in UK
Computers, tablets and phones are the devices of recent generation that have become
necessity in today's era. Once was a time when these devices were considered as a desire and not
a need. The main factor that has affected the necessity of theses devices is change and
improvement in technology (Asai, 2016). Change in technology has impacted positive as well as
negative demand and growth of these devices.
In UK more than half of the population is using tablet. However, even then prices of
tablet has been declined in past recent years. Before identifying the reasons for decline in the
market share and prices of tablets in UK, it would be beneficial to know the factors that effect
helps in determining the prices of tablets and computers in UK. These factors may be
summarised as below:
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Industry Standards: All types of industry have their set standards in determining price
of their product. A company cannot determine price of its product at its own basis, follow up of
rules and policies is necessary. This also includes prices of other competitors in the market.
However, advanced technology has made it easy to identify prices of products of other
competitors.
Competing products: In the industry of tablets and computer, buyers have numerous of
choices and also there are number of substitutes. Therefore, while determining price of a product,
prices of competitors is an important factor (Babai, Ali, Boylan and Syntetos, 2013). For setting
the prices while taking in consideration prices of competitors, company can also use competitive
pricing methodology. There are many competitors in the field of table and computers like Apple,
Samsung, ASUS, Microsoft, etc. Pricing higher than the prices of competitors by providing same
features will cause company loss of market share and customer rotation.
Consumer Demand: Demand of customer changes with the change in technology. Prices
must be accordance with the technology. More the latest technology product more will be the
demand of customers, therefore prices of such products can be set at high profits. While tablets
with obsolete technology will not attract high demand (Miyagawa and et.al., 1997). Keeping
prices of such products high would negatively impact the market share and demand of the
company products. It is generally assumed that, consumer will be willing to pay high for good
quality products and latest technology products rather than paying for old and obsolete products.
Product Positioning: prices of the products of the company are important factor that
affects the view point of customers regarding the company and also about the quality of the
product. Consumer assumes high quality if the prices of the products are high. It is general
perception of consumers that low priced products have low quality (Chan-Olmsted and Shay,
2016). Therefore, in order to position a product in high market, prices plays an important role.
High priced product companies set themselves as luxury and upscale brands.
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Global Growth of tablet market
(Source: Number of tablet users worldwide from 2013 to 2020 (in billions), 2017)
Market of tablet is increasing and market of traditional computers has been declining
from the past few years. Main reason behind this is that the tablets are easy to handle anywhere
while one cannot think of carrying a traditional computer with him on a trip. As per the new
report, it is expected that global tablet shipments will increase at 9.1% CAGR at the end of 2026.
Hence, considering the trend of tablet market it can be stated that global tablet market will nearly
reach on US $ 600 by 2026 (Growth of Global Tablet Market, 2017). Along with this, growth of
tablet market can also be seen through the means of number of users. The above depicted graph
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shows that in 2013, number of tablets users were .66 billion, whereas level of the same
accounted for 1.23 billion at the end of 2017.
Global growth of tablet market is highly influenced from the changing taste and
preferences of customers. This is one of the main factors that have high level of impact on
demand level. Tablet’s offer high level of convenience to the customers as compared to personal
computer’s. Moreover, customers can carry tablets easily wherever they want. In addition to this,
after the recessionary session purchasing power of customers are increased significantly
(Rosenfield, Jahan, Nunez and Chan, 2015). Further, overall economic development also gives
indication in relation to market growth. Hence, considering the overall evaluation it can be stated
that taste, preferences and attitude of customers towards specific product is high then demand
level increases and vice versa.
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