Aggregate Demand : Psychological

Article : http://www.vancouversun.com/technology/Gartner+Apple+will+remain+leader+tablet+boom/4594465/story.html

Summary:  

Mentioned in this article, is the new and sudden demand and interest in the "tablet race" between such companies are Apple, Samsung, and Research in Motion.  As the competition is steadily growing and becoming more and more competitive to capture more consumers, it is evident to see that companies are investing tons of money in developing new applications and technology to place themselves, at the very minimum, at par with Apple's iPad. Although at first glance, this sudden outburst of tablet madness may seem peculiar, it is notable that within 3 years of the iPad's release, expected sales have risen from $17.6 million to $108 million - a trend that seems to indicate demand is growing as more and more are sold.

Connection:  

I feel that this article strongly relates to the key concept of chapter 6 - aggregate demand.  In particular, it can be strongly connected to the "psychological" factor of aggregate demand.  In the psychological factor of aggregate demand, it is said that individuals may often find themselves being influenced to buy certain items as a sign of status ( in this case, money or style ) , or simply because the people around them have it so they too must have it.  This point can be proven further by the fact that, in the case of these tablets, the trend shows that as it's sale go up and up, so follows it's demand.  Psychological factors can also be once again seen playing a huge role in the "tablet madness" ensuing today as there are tons of people lining up to be first to take one home - although there are clearly no benefits of receiving it a few days before everyone else.

Reflection:

Personally, I feel that this obscure "need" for tablets is ridiculous.  There are tons of laptops that are around the same size as these tablets - with one exception: they can do a whole lot more.  Despite my personal input on the matter, I can understand why many people get a thrill through getting new gadgets, as I too at times find myself sucked into new fads in technology without knowing any particular reasons.  On the second thought, maybe the new found craze for iPads and Playbooks alike isnt such a bad thing - after all, it is creating jobs and shoving millions of dollars into our economy.