With the rumors about the all new version of iPad i.e. the iPad 3 are spreading rapidly, one is completely doubtful about what will happen to the iPad 2. the prices of the tablet are rapidly dropping and are currently its all time low.
When compared to the times when the apple ipad 2 was about the hit the market, the
first-generation iPad got only a $100 price cut until units ran out. However, the main reason for such a low cut was that Apple dominated the market at that time and barely had any competition. Times have changed now. With amazon Kindle at a price of $199 and amazon promising to launch an upgraded version soon, Apple is facing a tough time.
It is speculated that Apple is trying to layout a strategy that would help the company to combat the increasing competition. Some experts believe that the company can launch the tablet in two different versions. One would be an high end model with all the features including the retina display and a lower end model that would be an upgraded version of the iPad 2. One can pick any according to their pocket suitability. If sources are to believed, then the high model will come in the market along with a price tag of $499 while the lower model ranging somewhere around $399. Still the difference between amazon Kindle and lower model of iPad 3 is quite big and Apple really needs to workout something really big. At this point, there are plenty of people who won’t need the iPad 3’s new bells and whistles and could gladly scoop up a iPad 2 for $299.
The main question is would Apple become more aggressive? It could limit the supply of iPad 2 in the market, and when its completely gone, the lowest range tablet available by the company would range $399. Is it possible that the company itself can drop the prices of iPad 2 to $199 to compete with Kindle and then launch the newer version at just $299. One cannot be sure about it but the dealers have already slashed the prices before the newer version to clear out the stock.