Starting today, the iPad 2 will be available in only 16GB form. The WiFi version will cost $399 and the WiFi/3G version is $529. Apple has announced that they will sell iPad 2 alongside the new iPad, with last year’s model. This puts the best selling tablet in a new price point range. At $399 it’s within striking distance of Android tablets like the Asus Transformer ,the Samsung Galaxy Tab 7.0 Plus and others.
There was a debate over the last few months regarding the iPad 2. Some said the iPad 3, now known as the new iPad, would replace the iPad 2. Others, speculated that the similar form factor and slightly upgraded specs, all told a different story. Well, as it turns out, Apple is in fact keeping the iPad 2 on the market for the time being.
Price drop for iPad 2 is not just Apple cleaning out inventory. iPad 2 is also improved with its firmware, has a new A5 chip built upon a 32 nanometer process, which means it’s cheaper for Apple to make… and potentially more battery efficient to boot
This strategy will likely increase Apple’s dominance in the tablet space. It now is officially selling two models. It doesn’t matter to the average consumer if one of them is a year old; it’s still better than nearly every other Android tab.