According to a new report by Digitimes Research, a substantial price drop is expected for current iPad 2 models which could completely “change the tablet game”. It is expected that Apple will keep its traditional pricing formula intact for the next-gen iPad with base model starting from US$499 as a result of which iPad 2′s price will drop to US$399. However, if Apple releases two versions of the new iPad as claimed by sources from Apple’s supply chain, Cupertino’s pricing strategy may change.

Citing from the source:

Sources from Apple’s supply chain have claimed that there will be two versions of the new iPad, one targeting the high-end segment and the other the mid-range. Digitimes Research believe the two new iPad models will both be equipped the A6 processor with high-end model coming with a high resolution panel (2048×1536) and the mid-tier model featuring the same grade of panel as iPad 2 (1024×768).

With the existing iPad 2, the Apple tablet series may cover all price segments – from entry-level to high-end. Apple’s pricing strategy for its iPad series is crucial to the tablet market. It remains to be seen at what price level Apple will set its entry-level iPad. For Wi-Fi only models, US$299, US$349 or US$399 may all be possible.

On average, majority of non-iOS tablets are priced between US$199 – US$399. But if Apple starts selling the iPad 2 for around US$299, it could seriously damage the non-Apple tablet’s sales including Amazon’s Kindle.

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Posted under: iPad Rumours

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