Originally Posted by F1Ferrari
Maybe I'm new at this, but I really don't see Apple keeping the iPad 2 in the marketplace once the iPad 3 hits the stores. With iMacs, iPods, MacBooks, MBP, and AppleTVs, once the new model is available, the older model is sold off and discontinued.
AFAIK, the iPhone is the only product in their lineup where the older model is kept available (albeit a cheapened version), and that's a market where the older models are regularly discounted. Why should they start this practice with the 3rd generation of the iPad, when they could just move everything to producing the newest and best iPad, keep the margins high, and still control 75% (or more) of the tablet market?
Apple has also done this sort of thing with the Touch which is similar to the iPad and even with the iPad, the iPad 1 was available for a while after the iPad 2 was introduced. I think that it's not a matter of if the iPad 2 will be available at a reduced price when the 3 comes out but rather for how long.
What might work is something like the following: The Touch (US pricing) for $199, $299, and $399 for a new version with a 4" screen. The old iPad 2 in non-3G form at 16GB and 32GB only offered for $425 and $525. The new iPad 3 offered in 3G form only and coming in at $649, $749 and $849.
Price points covered ranging from $199 up to $849. 9.7" tablets covering $425 to $849. Lots of bases covered and assorted budgets accommodated. No pricing overlap. If this is how Apple does this, typical of how they do things.