Facing the rising demand for cheaper (budget) tablets, Apple has announced it will sell the iPad 2 alongside the new iPad, with last year's model deflating to a more palatable price of $399 for the WiFi-only model, or $529 for the 3G version. That entry-level price in particular puts it in more direct competition with a slew of mid-range tabs that previously undercut the iPad, including the Samsung Galaxy Tab 7.0 Plus and others. Specifically, though, Tim Cook hopes that lower price will attract not just thrifty consumers, but schools looking to issue iPads in large numbers, a move that dovetails with the release of iBooks textbooks and the iBooks Author OS X app earlier this year.
While this is the first time that Apple will be selling two iPads at the same time, the strategy has been used before when it comes to iPhones.
What's notable is that usually the trade-off has been that users have had to settle for devices with minimal built-in storage, which you naturally can't expand with a memory card, this being an iDevice. In this case, though, the iPad 2 will still be offered with 16GB of built-in storage, as opposed to, say, eight gigs.