iPad 2 could drop to $299 to fight Kindle Fire

Posted by Shane McGlaun

The Apple rumor mill is running full tilt right now with talk of new iPads coming this month.

Not long ago, rumors swirled about the advent of two new iPads that could fit into Cupertino’s lineup along with the existing iPad 2. The pair of new iPads are said to feature high-resolution Retina screens, with one to target mid-range buyers and the other aiming for high-end audiences. 

iPad 2 could drop to $299 to fight Kindle FireThe advanced high-end screens the two new tablets may boast are likely based on IGZO display technology. However, the high-end device may also include a massive battery with twice the run time of the mid-range offering.
With those two new iPad tablets aiming at the mid and high-end of the tablet realm, the iPad 2 that is already on the market and selling in droves is said to be dropping down to target the low-end of the tablet market the Kindle Fire serves.

AppleInsider reports that another DigiTimes source has stepped up and is claiming the iPad 2 entry-level version will drop from the current $499 to $399.
That price would put it at $200 more than the $199 price point of the Kindle Fire tablet, but many consumers would gladly play the extra money to buy an iPad. Of course, it's possible the iPad 2 might get even cheaper than the $399 price point, with $349 or even $299 rumored. 

There are some flies in the rumor ointment though, with conflicting reports circulating. Indeed, previous reports indicated Apple is poised to reduce the production rate of the iPad 2 to ramp up for the iPad 3.

If the iPad 2 is to stay around, it doesn't seem likely Cupertino would slow production of the current tablet. Apple would undoubtedly offload numerous iPad 2 tablets at $299 or $399 - and would require increased production, not less.