Consumers Want a Cheaper iPad

According to a survey conducted by RBC Capital Markets, 20 percent of consumers who are not planning to buy an iPad would change their minds if Apple decides to sell the iPad 2 for $100 less.

Currently, the entry-level iPad 2, which comes equipped with 16GB of storage and WiFi connectivity, retails for $499, but there has been quite a bit of speculation on whether or not Apple might continue selling the iPad 2 alongside the iPad 3, at a cheaper price oriented towards both schools and consumers looking for a more affordable option.

This theory gained some credibility when Apple released the iPhone 4S, with the entry-level 16GB phone priced at $199, and did not discontinue its lower end iPhone 4. Instead, the Cupertino-based company began offering the iPhone 4 at $99, and the iPhone 3GS for free, with a 2-year carrier contract.

A cheaper iPad would allow Apple to appeal to customers who have thus far sought lower cost options, like the Kindle Fire, giving the Seattle-based retail giant a serious run for its money.

iPad 2 prices could drop as early as next week, after Apple’s March 7th media event where the company is expected to announce its third-generation iPad.

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  • jarland

    I think perception is the biggest issue here. Honestly, as the iPad stands, quite a few people are able to replace their laptops with them. As it moves forward, I think this leap will become more and more possible for everyone but power users (and even some of those, I love the thrill of being a power user on a device that isn’t made for it). When held up against a laptop, if the iPad meets your needs, it is the most inexpensive and reliable of the two. We’re not there yet, but I think that is the direction we will be heading.