Apple to Slash iPad 2 Prices on Arrival of Two 'iPad 3' Models

With the arrival of the next generation tablet from Apple only a matter of months away, a fresh report indicates that the iPad 2 may soon be available at very attractive prices, becoming Apple's entry-level tablet.

Digitimes Research points towards there being two new iPad models, both equipped with A6 processors; the high-end model having a high resolution panel (2048x1536) and the mid-tier model featuring the same grade of panel as iPad 2 (1024x768).

As DigiTimes points out, the price drop for the present top-end iPad could be a significant one within Apple's new pricing strategy: "With the existing iPad 2, the Apple tablet series may cover all price segments--from entry-level to high-end."

The Taiwanese website, with connections in Apple's supply chain, is not too specific about how low the price could go, adding "it remains to be seen at what price level Apple will set its entry-level iPad. For Wi-Fi-only models, U.S. $299, U.S. $349 or U.S. $399 may all be possible."

If the rumours prove to be true, it would not be the first time Apple has sold its tablets for $299, the original iPad was available with this price tag at some third party carrier stores. Meanwhile, competitors, led by Amazon's Kindle Fire, are targeting the $199-$399 price range.