9/13/2010

Complementing Tablets

Dodocase is extracting consumer surplus as a complement product to Apple’s iPad. This innovative idea of making a “book-style” case has been extremely successful and has greatly impacted the manufacturers struggling business—not as many books being bound in the US these days. In fact, all these new products have been quite successful with the release of the iPad, and many are being modified to complement the Kindle as Amazon reports an increase in demand.

1 comment:

Dave said...

-2 for poor writing (waived because it is the first block); I think you mean complementary product; "not as many books ..." is kludgy, and doesn't convey what I think you mean.

As to the economics, I'm not sure I'd call this "extracting" surplus. That implies that it's something consumers might have gotten, but was instead transferred to producers. That usually requires some market power or favorable regulatory environment, and I don't see that here. I do think it's just plain vanilla market transactions - creating surplus for both sides of the deal.