Report: iPad 2 May Drop to $299 After iPad 3 Launch

**teknishun** · 01-03-2012, 10:10 PM

Report: iPad 2 May Drop to $299 After iPad 3 Launch

Apple may reintroduce the iPad 2 with a $299 pricetag during the supposed iPad 3 launch later this month.

Last week brought reports that Apple plans to reveal two versions of the iPad 3 this month during the Macworld/iWorld expo scheduled for January 26-28, 2012, in San Francisco. Both will reportedly offer the same 9.7-inch QXGA screen (1536 x 2048) and A6 SoC, but one model will sport a 5MP camera whereas the other will feature an 8MP camera. These will serve as new mid-range and high-end tablets in Apple's iPad lineup.

As for the low-end/entry-level model, this will be Apple's current iPad 2, according to sources at Apple's supply chain partners. We speculated that it will be re-launched with a lower pricetag than what's offered now, and even suggested that Apple may introduce an 8 GB model to put Apple in a better position to compete with Amazon, Barnes & Noble and even Archos in the $199 tablet market.

However on Tuesday sources from Apple's supply chain clarified that the high-end 8MP iPad 3 will have the high resolution QXGA panel (2048 x 1536) and the 5MP mid-tier model will have the same XGA panel offered with the iPad 2 which comes with a 1024 x 768 resolution. That means Apple would essentially offer an iPad with a A5 SoC, XGA panel and a 0.3MP camera, an iPad with an A6 SoC, XGA panel and 5MP camera, and an iPad with an A6 SoC, QXGA panel and 8MP camera.

As for pricing, there's speculation that the Wi-Fi iPad 2 could sell for as low as $299 USD. Currently Apple offers three iPad 2 Wi-Fi only models: $499 for 16 GB, $599 for 32 GB and $699 for 64 GB. While it's possible that Apple may knock $200 off the price of its 16 GB model, providing an 8 GB version with a low price point seems more likely.

Will a $299 iPad tablet be competitive in a $199 tablet market? For many consumers, the $100 price gap between the Kindle Fire and the possible $299 iPad 2 may be too wide. Another problem Apple may have in competing with Amazon's Kindle Fire is that it's essentially the only Android tablet that allows consumers to purchase and stream video content directly to the device -- Google's Android Market only provides rentals (Ultraviolet doesn't count yet, sorry).

Amazon also stays competitive with the Android Market, offering a free Android app each day while countering Android Market promotions like the $4.99 albums and 0.99 EA games. To some degree Amazon and Google are tag-teaming against Apple, both providing cloud storage for video, music and ebook purchases (except for the Green Lantern license which ends in March doh). However in the long run, both Android and iOS have their strengths and weaknesses -- consumers simply need to weigh each against how much they're willing to spend.

**xandermac** · 01-04-2012, 08:07 AM

Awesome if it happens.

Sent from my iPhone4s using Tapatalk

**i7guy** · 01-04-2012, 02:56 PM

The $299 ipad wifi version is a steal.

**A93hunt** · 01-04-2012, 05:21 PM

I really doubt this'll happen. I recall reading somewhere that it costs Apple somewhere between 200-300 dollars to make an iPad, a 300$ price tag seems unlikely in my book. Also, according to patterns, Apple typically releases on model at a time so a 5 and 8 megapixel model difference would break this pattern. Last reason why this seems unlikely is because there'll be too many configurations available 2 (colour)X 3 (memory configuration)x 3(GSM/ CMDA/ WiFi only)x 3(models)= 54 different iPads that Apple would would have to deal with.

I'm not saying that indefinitely that this won't happen, I'm just saying that IMO, this seems unlikely.

**app_Developer** · 01-04-2012, 05:29 PM

Originally Posted by a93hunt

I really doubt this'll happen. I recall reading somewhere that it costs Apple somewhere between 200-300 dollars to make an iPad, a 300$ price tag seems unlikely in my book. Also, according to patterns, Apple typically releases on model at a time so a 5 and 8 megapixel model difference would break this pattern. Last reason why this seems unlikely is because there'll be too many configurations available 2 (colour)X 3 (memory configuration)x 3(GSM/ CMDA/ WiFi only)x 3(models)= 54 different iPads that Apple would would have to deal with.

I'm not saying that indefinitely that this won't happen, I'm just saying that IMO, this seems unlikely.

I generally agree. The current 18 is bad enough.

But one note is that they won't need separate GSM and CDMA models now with the current chipset they use. So they could do two models (iPad3 and iPad2) and have only 14 models total, which is fewer than they have now. Because the cheap iPad2 would just be in one memory config and wifi only.

This is consistent with them selling the 3GS at pretty close to the reported component cost right now. Apple's real costs are hard to analyze anymore because of the massive pre-purchasing they've been doing. So the actual cost of running out another 20 million iPad2's may not be as high as earlier estimates.

**TurboTiger** · 01-04-2012, 09:41 PM

If this happens, you can put me down for one of those $299 iPad2's.
It will be a nice compliment to the iPhone the I may be picking up next month.

Seriously, securities analyst have been suggestion anywhere from this month to mid year on the iPad three. But in the last week I been hearing more about Mar/Apr.

Regardless, this should be an exciting year for Apple.

Good Luck

**ransonju** · 01-05-2012, 03:22 AM

Originally Posted by TurboTiger

If this happens, you can put me down for one of those $299 iPad2's.
It will be a nice compliment to the iPhone the I maybe picking up next month.

I'm in the same boat. They will sell a TON of units at that price.

Posted from my CrackBerry at wapforums.crackberry.com

**Jeh** · 01-05-2012, 09:30 PM

I would buy a one for my Wife in a heartbeat at $299. I was never an Apple fan..Windows phone 7 and 2 Zunes, hut I bought an iPad2 to replace a dead laptop at work and its a great device.

**soccernamlak** · 01-05-2012, 09:45 PM

Hmm; I would have said $399 being the realistic price drop for the 16GB Wi-Fi iPad2

**Chrisy** · 01-06-2012, 05:57 AM

I just spend $429 on half of an iPad2 for my dad! Split the cost with my mom. Oh well!

**jlb21** · 01-12-2012, 02:10 PM

My wife's birthday is in early feb. I plan on getting a 2. I hope the price drop occurs soon, or at least within 14 days (the usual price protection window) of my purchase......

**kyd87** · 01-13-2012, 05:20 AM

A 299$ pricetag would be very nice. I can not see this happen now though.

I do believe though that they will keep the iPad 2 around as a cheaper version. It has worked great for Apple with the 3gs and iPhone 4 being around (and still being top selling smartphones) thus I would definitely say they will do the same thing with the iPad. But 299? sounds to good to be true.

**Accidental Post** · 01-13-2012, 07:32 AM

Apple is seriously looking at the iPhone 4s sales model with the iPads.

As they roll out new ones the "old" ones will continue to be sold but at discounted prices. I wouldn't be surprised if Sprint picks it up also.

**pri79269** · 01-19-2012, 11:50 PM

This sounds great, but I'd be shocked if it actually happened.

I picked up my refurbished 32g ipad 1st gen after the 2nd gen launched for $429.

**jlb21** · 01-31-2012, 11:35 AM

Will be buying the 2 for my wife on Saturday. That gives me until the 18th for guaranteed price protection. I think if it happens anywhere about 2 weeks beyond that that I might be able to work something with a store manager......we'll see.

I would absolutely buy a refurb for myself (as it is basically brand new), but I just can't do that for a gift. And not an IOU either......

**i7guy** · 02-04-2012, 10:14 AM

Originally Posted by jlb21

Will be buying the 2 for my wife on Saturday. That gives me until the 18th for guaranteed price protection. I think if it happens anywhere about 2 weeks beyond that that I might be able to work something with a store manager......we'll see.

I would absolutely buy a refurb for myself (as it is basically brand new), but I just can't do that for a gift. And not an IOU either......

Funny you say that. I just bought a 16 gig 3g VZ ipad 2 for my wife. She can't shlep around her laptop constantly due to shoulder issues and needs a piece of gear midway between a laptop and smartphone for her business.

Unfortunately, RIM does not have the 10 inch playbook for sale and I won't get an Android device, and I didn't want anything that looks or smells like a laptop, since she already has a decent one.

So since she already has an iphone, sigh, optionless, I called on almighty Apple to help resolve my predicament; and they hast said even though I had posted negativity regarding said device on crackberry.com, they would grant me absolution and allow me to purchase said device.

So it's being delivered to the local apple store for pick-up. The choice of shipping destinations is actually pretty cool.