iPad 2 Price Drop: Huge Reductions Could Threaten Kindle Fire Sales
Apple has unveiled its new iPad this week, sparking a rush to pre-order the latest tablet device for its March 16 release date. However, the company has also decided to keep selling the older iPad 2; dropping the $499 price by $100.
Some are suggesting that Apple is hoping to make the iPad 2 competitive with the Kindle Fire from Amazon. However, seeing as the Kindle Fire is just $199, even a hugely reduced $400 iPad 2 would not be that attractive to someone really prioritizing finances when buying their tablet device; a user could purchase two Kindle Fires for the reduced price iPad 2.
However, this discrepancy hasn't stopped some media outlets from suggesting that Amazon may still be feeling the heat from the reduced iPad 2 and could be looking to slash prices on its own Kindle Fire.
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Amazon could not be reached for comment, but there's enough speculation from various sources to suggest they could contemplate such a move.
The iPad 2 price drop "will put pressure on those who are trying to undercut the iPad on price," said Chris Jones, an analyst with research firm Canalys, according to Bloomberg. "The market has changed in the past few months with the arrival of Amazon."
The Mac Observer noted that the iPad 2 is superior than the Fire on battery life, display, processing power and graphics performance and number of apps - and that the divide between the tablets may persuade those thinking about the Kindle Fire to just invest a bit more and get the more sophisticated product in the iPad2.
"Apple's 20 percent price drop could mean a lot for some price-conscious consumers," the site said.
The price cut "could prove an important move for Apple as it bids to see off the challenge from cut-price rivals such as the Amazon Kindle Fire," said uswitch.com.
The 16 GB version of the new iPad will cost $499, the 32GB one will be $599, and those who want the 64 GB the price rises to $699.
For the top range new iPads that include 4G LTE coverage, those prices shoot up to $629, $729 and $829, respectively.
