- Title of Extract: Chipmakers Feel the Pain as iPad Eats Into Notebook Sales
- Source of Extract: Wired
- Date of Extract: October 15, 2010
Key Points:
- The iPad table “as the tablet eats into consumer demand for notebooks.”
- The chipmakers of this product are working to create an alternative, a substitution to the iPad
- People are buying iPads and smaller computer in substitute of notebooks/laptops, decreasing sales
- “Other companies such as Dell, Samsung and BlackBerry maker RIM have announced new tablets but the iPad remains the market leader for now.”
- Apple influenced PC sales, and now Intel is hoping to do the same thing with their new “MeeGoo” tablet
- A German company has already released a tablet with a “MeeGoo” operating system, so Intel must act fast
Economic Connections:
- Oligopoly: It seems that there are a few large companies that are involved with these tablets and are having control over the prices
- Demand is lowered for notebooks as the demand for tablets are becoming popular (substitutes)
- Companies are trying to make competing products to the Ipad, but the barrier of entry is relatively high
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IB Econ Class Blog 2010-2011 
The article meets the IA guidelines, it’s not a blog nor is does it do the economic analysis for you. I especially liked the article because it’s relevant to our lives and our environment. Your economic connections fit as well. iPad’s are a substitute for notebooks, shifting their demand curve to the right. Also, the barrier of entry is very high, as you said. It’s not easy to become a highly rated technology company like Apple, Microsoft, or Intel. Your identification of the market structure as a oligopoly seems to be correct as well. Great job!
A) Yes, I think this article fits the IA guidelines. It doesn’t include economic terms and commentary about the curreent event, and it was written within the past 6 months.
B) Along with the analysis about the market structure (oligopoly) and change in demand because of substitutes, I think it’s also important to note the change in demand for Apple PCs because of complements. The iPad’s “halo effect” has spurred Apple Mac sales, essentially shifting demand for Apple computers.