Apple (AAPL) Could Price New iPad to Eliminate Competition...Again

January 3, 2012 7:44 AM EST
The not-yet-announced next-generation iPad is expected to price at $499, right in-line with current pricing for the iPad 2. Following the introduction of the newest iPad, word is the iPad 2 price will fall to $399 or so.

But what if there were two new iPad models debuting?

According to Digitimes Tuesday morning, that's the hot question. Recent rumors suggest Apple could release an iPad for the high-end market, and one for the middle market.

Sizing on both is expected to still be 9.7-inches, but display resolution will vary between the models. The better model's resolution will be at about 2048x1536 pixels and the mid-tier model at 1024x768, similar to the current iPad 2.

Both will be powered by the new A6 processor.

How much to enter the world of iPad? Digitimes said the lowest-end iPad 2 could drop to a price of $299, with successive models at $349 or the aforementioned $399.

This pricing scheme could once again alter the tablet market. Amazon's (Nasdaq: AMZN) Kindle Fire and Barnes & Noble's (NYSE: BKS) NOOK Color are both priced at $199 or so, a fair price for an entry-level tablet with decent quality. Should Apple price it's current -- and still-desirable -- iPad 2 just $100 more than Amazon and B&N offerings, investors and market watchers could see sales for those two drop dramatically.

Unless, of course, Amazon and B&N both drop the price on their offerings, or offer an improved device for the same price. Things should get interesting in the first half of 2012 when new tablets start making the rounds.

Shares of Apple are up 1.6 percent early Tuesday.


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