iPad 2 Rival Alert : Acer Iconia A500 Price Drops £240, Then Vanishes

Acer is clearing out stocks of the Iconia A500 it would appear, with at least one UK online retailer, Dabs, cutting the price of the tablet to £239.98 using the voucher code SAVER10.

Unfortunately, stocks have now been depleted and the item is now being listed as discontinued, which either means that Acer may pull out of the tablet market or, more likely, that it will launch a new Acer Iconia tablet soon, just weeks after the launch of the Asus Transformer 2.

Other vendors like Play.com and John Lewis are selling the A500 for £299.99, a £100 discount from the original selling price of the tablet. Acer's tablet was launched at the beginning of the year at Mobile World Congress in Barcelona.

Unfortunately, it only went on sale in April and had to withstand the full force of the iPad 2 marketing clout when it launched in March 2011. It also faced some tough rivals like the Samsung Galaxy Tab 10.1, the Asus Transformer and the Motorola XOOM whose price has been reduced.

Acer hasn't yet confirmed whether it will still continue to produce tablets. It is the only major manufacturer on the market to offer both Windows 7, Intel-based tablets and Android, ARM-based models at the same time.