Apple Slashes iPad 2 by $100, How Will Tablet Makers Compete Now?

Apple has regularly dropped the price of its’ previous-model iOS devices in order to increase sales and grow their market share. With the most popular generation of iPad now only $399, it might be looking like a better option for potential Kindle Fire buyers.

When Apple reduced the price of the iPhone 3GS shortly after the release of the iPhone 4, it increased their market share of the phone industry because consumers could now get their hands on a coveted iPhone for as low as $100. It forced smartphone manufacturers to compete at a lower price.

The iPad 2 became the most popular tablet device in 2011 by a wide margin, and was also Apple’s most popular iPad ever, so far of course. By reducing the price by $100 and keeping it on the assembly line, it puts pressure on other tablet makers that have been treading water for the past year. Companies like Samsung and Motorola now have to compete with a $399 price point, which is something they haven’t been able to do so far.

The lower price tag also puts Amazon in an uncomfortable position since its most popular tablet is now only $200 cheaper than Apples larger, bigger and better tablet. If the online retail giant ever decided to go for a 10-inch tablet, there is not much chance it could compete with the iPad 2’s price.

If you’re in the market for an iPad, but aren’t ready to put down $500 for the newest tablet just yet, take a gander at the iPad 2 model. I’ve had mine for a year and have loved every day we’ve been together.

About Lory: Writer of all things app related, traveler of the space-time continuum, baker of really great cookies. Follow me @appaholik

  • Lee Swain

    I seriously doubt those looking for a entry level tablet will be overcome with desire by something that is twice the price. $300 more or $200 more it’s still a hefty price increase.

    Those on the fence that decide $200 is a price they are willing to pay for a entry level tablet are not about to decide that if they are willing to pay $200 then might as well spend twice that amount.

    By that logic they might aswell throw in another $100 and get the iPad 3!

    The real secret for Apple is that cheap tablet’s sell iPads, the Kindle Fire sells iPad’s because once people become accustomed to the joys of having a tablet, when they are ready to upgrade they wont want an entry level device. Or they will decide to hand the low end one down and get themselves something better.