Apple’s iPad 3 is expected to make its debut early this year, but it may not be the end of the much-loved iPad 2.
According to the company’s plans for display panel shipments, the iPad 2 is certainly not about to meet its demise. Instead, Apple may follow the same steps it has taken with the iPhone 4 and offer its second-generation iPad alongside the new model as a cheap $299 alternative — allowing it to compete with Amazon’s budget Kindle Fire tablet.
A report sent into DigiTimes revealing Apple’s plans for display panel shipments suggests the Retina Display for Apple’s iPad 3 will surpass production of displays for its iPad 2 during the second quarter of this year, but that suppliers will continue to ship over 25 million iPad 2 displays in 2012.
That’s a huge reduction to the 48 million panels produced in 2011, but it’s still a pretty huge number — especially for a device that might be on its way out of the door. These numbers would suggest, then, that the iPad 2 still has life left in it yet, and that it could be offered as a cheap alternative to the iPad 3 — much like the iPhone 4 is to the iPhone 4S — and an iOS-powered alternative to budget Android-powered tablets like the $199 Kindle Fire.
The iPad 3 is expected to carry the same $499 price tag as the existing model, but could even be slightly cheaper, according to some reports. In addition to its long-awaited Retina Display, the device is also expected to feature LTE connectivity, and Apple’s quad-core A6 processor.
Alongside iPad 2 panels, suppliers will ship 40 million displays for the iPad 3, according to the report, totaling 65 million iPads during 2012.
[via MacRumors]
Killian Bell is a freelance writer based in the U.K. He has an interest in all things tech and also covers Android over at CultofAndroid.com. You can follow him on Twitter via @killianbell.
20 responses to “Apple Will Sell Cheap iPad 2 Alongside Retina Display iPad 3 [Report]”
Really impressed that you got the current price of an iPad 2 wrong…that takes mad editing skills….
A $299 model of the iPad 2 would effectively kill most Android sales, and it would pre-empt Amazon from entering the 9.7 inch or better arena with a similarly priced tablet.
I don’t know if they will drop the price 40% though. I mean sure with phones they can cut the price in half, but that’s only because the sicker price is only a small part of what the customer pays. In reality, those price drops are less extreme.
Example: iPhone 4 going from $199 to $99 is not a 50% cut, because the full phone actually costs $649 without subsidies. So that brings it down to $549 without subsidies. That’s just a 15% discount (even though to the naked eye it appears to be a 50% cut).
With the iPad having no subsides, if Apple applies an iPhone-esque previous-gen 15% discount, it would put the entry level iPad 2 at $424.
Realistically, for the sake of having a nice rounder/more attractive number, I’d say a cut to $399 is the most we’d get. It’s still a good discount and would effectively mean Android tablets would have to be priced $299-$349 to compete.
But with a NEW iPad 2 selling at $399, we’d likely see refurbs at $349 or maybe even $329 or something around there. Perhaps refurbs of 1st Generation iPads (as they occasionally pop up) could go to $249-$299, though at this point I’m not sure I’d buy a product that’s 2 generations out of date.
How many times are you gonna repost the same story. This is probably the second or third time I’ve read this rumour here.
A Retina Display iPAD will be something to see.
The iPad 3 is expected to carry the same $399 price tag
Oh yeah? Where can I get one at that price?
Where is the disclaimer that rumors from DigiTimes are proven to be wrong far more often than they are right? I think Apple rumors are now a wholly-owned subsidiary of DigiTimes.
You know, I never thought I’d see the day when I tire of Apple rumors. Now that they’re reproduced as front-page news across the MSM, that day has come…
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Don’t think so.
Take your spam elsewhere there is not a site I go to that I don’t see this garbage, where are the monitors?
I wish they would put RUMOR as some sites do in the title, we won’t know until the products come out will we?
One more thing, where is the $399 for the “existing model”. was this written correctly or do you know where we can get the “existing device” for $399? Please show more.
Why you guys post idiotic “insider info” like this is beyond me. If you have a brain you know Apple won’t drop one of its top money makers 40% to $299. It will be $399 if they end up keeping it around. Apple is a luxury brand, it’s not meant to be affordable to everyone. It’s about status and Apple would never drop the entry price $200, especially since that would kill resale value as well.
sooooo…. rumor?
Why not? It has dropped the price of its iPhone 4 to make it affordable; why not the iPad 2? Apple’s iPad won’t be one of “its top money makers” if it can’t compete with cheaper devices.
It’s not all about status, and I don’t think resale values are Apple’s concern. Again, it has dropped the price of its iPhones and it continues to make Macs and iOS devices cheaper. Why wouldn’t that continue?
My bad. As a Brit, I had British prices in my head! I’ve now amended it.
No, that’s why we put “[Report]”
As I said to a previous poster, I accidentally wrote the British price (as I’m a Brit), but I’ve now amended it. Sorry for the confusion.
Killian Bell, how is this a [REPORT] instead of [RUMOR]? DigiTimes sourced “Taiwan-based supply chain makers.” Did you contact them to corroborate the story? And if this turns out to be false, will you offer a retraction or correction to this story?
It is very possible. The iphone 4 dropped to $199 before the iphone 4s came out. With most cell phone plans, people are barely paying anything for the iphone 4s. Also I think Apple is smart to sell ipad 2 for $299. This is a competitive market. The kindle in my opinion does not compare but for those frugle people out there Apple dropping the ipad 2 can really boost sales.
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