$299 iPad 2 seen shaking up tablet market, Amazon's Kindle Fire

Posted:
in iPad edited January 2014
Though Apple already dominates the tablet market, the company could ward off growing competition and increase its sales even further by selling the iPad 2 for as low as $299, one analysis has projected.



The new take from Taiwanese industry publication DigiTimes offered on Tuesday projects that Apple will keep its current iPad 2 available after it launches a third-generation iPad in the coming months. At most, it projects that the iPad 2 price will drop to $399 for the entry-level model, which would be $100 less than the current cheapest model, and would be a strategy similar to what Apple has employed with its iPhone lineup.



But Apple could be even more aggressive and price the iPad 2 even less, potentially at $349 or even as low as $299, the analysis concluded. A $299 iPad 2 is seen "seriously" affecting Apple's tablet competitors, including the Amazon Kindle Fire, which has created a new low-end tablet market with its $199 price.



In addition to an iPad 2 as inexpensive as $299, Apple could also grow the iPad range upwards, the report said. The same publication reported last month that Apple will launch a new high-end iPad model with an 8-megapixel camera and high-resolution Retina Display, along with a mid-range model equipped with a 5-megapixel camera.



But that report also claimed that Apple would unveil the two new iPad models at the MacWorld | iWorld conference later this month, an event that Apple has not participated in since 2009. The claims of a so-called "iPad 3" unveiling at MacWorld were quickly debunked by more reputable reports.







It was also said last month that Apple has begun reducing orders for the iPad 2, but added that it was "too early to tell" whether the 2011 tablet would continue to be sold at a discounted price. The prospect of a new entry-level model has been seen by analysts as a way for Apple to counter the Kindle Fire, which Amazon is believed to be selling for a loss in order to push digital content to users.
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Comments

  • Reply 1 of 92
    Selling iPad 2's for as low as $1.00 has also been seen as a move that would shake up the industry.



    (Just thought I would see what it was like being an analyst for a minute or two myself.)
  • Reply 2 of 92
    sandyfsandyf Posts: 42member
    Apple is currently selling their refurbished 16GB iPad2 for $419. Can't see them selling it new for $299, even if it's last years model. But it would be sweet!
  • Reply 3 of 92
    irelandireland Posts: 17,547member
    iPad 2 will sell for $399 and iPad 3 will sell from $499.



    Mark my words.
  • Reply 4 of 92
    mcarlingmcarling Posts: 1,106member
    I would not be surprised to see iPad 2 production continue and prices drop by $100 when the iPad 3 is released. I would be very surprised by a larger price drop.
  • Reply 5 of 92
    Apple is a premium brand. They will not dilute the brand by trying to compete with Amazon for the cheapskates.
  • Reply 6 of 92
    wigbywigby Posts: 688member
    no story here.





    can we seriously just overlook everything apple-related that this rag publishes until they earn some kind of industry respect? not sure if i'm more annoyed at digitimes or apple insider for wasting bandwidth.
  • Reply 7 of 92
    If that Fire was selling at $150 then it might have made a loss.



    Many $100 Cortex A8 capacitive tablets are now available offering more. So it might be considered very bad housekeeping by Amazon to make a loss on a $200 sale.



    The most interesting event so far this year is certainly the Playstation Vita. Unless Apple has got it's actual together this Vita CPU will also be in the iPad 3.

    So now we have a dedicated games device that can also be a smartphone.



    The interesting question now is, will cheap 99c apps be preferred on a $650+ device to $15+ real games on this $350 one?

    5" certainly creates overlap between phoe and tablet so where is the 5" Apple A6 iPod touch?
  • Reply 8 of 92
    crowleycrowley Posts: 5,771member
    8MP camera? In a tablet? Useless.
  • Reply 9 of 92
    There's a danger in dropping the current iPad 2 to $299 and putting the better Retina iPad 3 at $499...



    ---> More people would just get the $299 model instead of the $499 model.



    Selling the iPad 2 at $299 would barely make Apple any money... ie low margins.



    And Apple is all about making money... despite claims that Apple is in trouble and will be chasing market share since the arrival of the Kindle Fire.



    Apple is a hardware seller first and an App Store second. A person couldn't buy enough apps to make up the deficit in hardware sales.



    Apple is not Amazon. Apple will not sell hardware with no markup and try to make it up in media. No way, no how.





    It's January 3, 2012. Is this the first ridiculous report from DigiTimes this year?
  • Reply 10 of 92
    Here is some very interesting info (IMHO) this peace of receipt from apple for iPad23g

  • Reply 11 of 92
    blitz1blitz1 Posts: 412member
    I don't understand how one can write about "warding off" whilst the market share is constantly shrinking. Maybe a title like "secure its position" would be better.
  • Reply 12 of 92
    People need to realize the Kindle DOES NOT offer the same experience as the iPad! It is a cut rate product that doesn't even come close to Apple's product!
  • Reply 13 of 92
    Every time you use Digitimes as source material for an article you lose credibility with me. I will no longer read any material you publish of this kind. Using Digitimes as a foil to make it ok to spread baseless rumors is not cool.
  • Reply 14 of 92
    Quote:
    Originally Posted by boriscleto View Post


    Apple is a premium brand. They will not dilute the brand by trying to compete with Amazon for the cheapskates.



    In the same way they would never compete with those cheapass Android phones by offering a $99 iPhone and .99c iPhone. Nope, they would never do that...Oh wait!



    http://www.wireless.att.com/cell-pho...e-packages.jsp
  • Reply 15 of 92
    Quote:
    Originally Posted by boriscleto View Post


    Apple is a premium brand. They will not dilute the brand by trying to compete with Amazon for the cheapskates.



    In the same way they would never compete with those cheapass Android phones by offering a $99 iPhone and .99c iPhone. Nope, they would never do that...Oh wait!



    http://www.wireless.att.com/cell-pho...e-packages.jsp
  • Reply 16 of 92
    Quote:
    Originally Posted by bobouches View Post


    Here is some very interesting info (IMHO) this peace of receipt from apple for iPad23g





    What is this? Where did it come from? Without more info this image is meaningless.
  • Reply 17 of 92
    pmzpmz Posts: 3,433member
    Quote:
    Originally Posted by Ireland View Post


    iPad 2 will sell for $399 and iPad 3 will sell from $499.



    Mark my words.



    Doesn't exactly take genius to figure this out. But yes, you're right.



    And next year, I think the iPad 2 might continue as well, at $299.



    But for 2012, the iPad will only come down to $399
  • Reply 18 of 92
    gatorguygatorguy Posts: 20,267member
    Quote:
    Originally Posted by GregInPrague View Post


    What is this? Where did it come from? Without more info this image is meaningless.



    That looks like an out-of-warranty service fee.
  • Reply 19 of 92
    stelligentstelligent Posts: 2,680member
    Quote:
    Originally Posted by Damn_Its_Hot View Post


    Selling iPad 2's for as low as $1.00 has also been seen as a move that would shake up the industry.



    (Just thought I would see what it was like being an analyst for a minute or two myself.)



    Love to see Apple announce that just to see the reaction from Amazon, Samsung, etc. That would be hilarious. But, an Amazon-branded iPad with Kindle baked into iOS could/would be sold at a very aggressively subsidized price in the same way AT&T is selling 3GS and 4. That would mean essentially giving up on iBooks. So I don't see it happening. Perhaps Apple could do a deal with B&N instead.
  • Reply 20 of 92
    Quote:
    Originally Posted by Kevin Winsness View Post


    People need to realize the Kindle DOES NOT offer the same experience as the iPad! It is a cut rate product that doesn't even come close to Apple's product!



    I think that there will end up with 2 different tablet markets. The premium market like the iPad which will offer great video and etc.



    And the tablet priced @ $100 or less that will be what the average person will use around the home to control TV, receive email, read ebooks and anything else that won't require a great screen or a lot of processing power.
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