Apple could launch a cheaper 8GB iPad 2 model on the 7th of March as well as launching 16GB and 32GB models according to a report from Digitimes which quotes anonymous sources within the upstream supply chain.
Apple normally sticks to this strategy for the iPhone. It introduced a 8GB iPhone 3GS when it launched the iPhone 4 and did the same for the iPhone 4 when it got the iPhone 4S launched.
Halving the amount of memory on the iPad 2 is more a matter of strategy than pricing; the difference on the bill of material is very small.
By sticking to 8GB (rather than 16GB), Apple adds yet another differentiation point between the entry level and the next more expensive model.
Oddly enough, Digitimes doesn't mention whether there will be an iPad 3 64GB or 128GB, an option which we think might happen.
ITProPortal.com has a live blog of the event from London, covering the pre-iPad 3 buzz happening over the weekend, rumours and the launch itself on Wednesday 7th. We suggest that you follow and bookmark this real-time live blog thread.