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Apple Cuts Price Of iPad 2 To £329

Apple has dropped the price of the iPad 2 to a mere £329 and unlike what it did to the iPhone 4 during a similar process, it did not change the specs (Apple halved the onboard storage of the new iPhone 4 to 8GB).

The price drop is significant; £70 represents 17.5 per cent of the original price and is essentially the VAT free cost of the cheapest iPad 2.

Apple will only sell the 16GB model (3G or Wi-Fi), both the 32GB and 64GB ones have been discontinued. Like the Wi-Fi model, the price of the 3G version has been slashed to £429.

The price cut will pile pressure on the other rivals, notably the Samsung Galaxy Tab 10.1 which is now significantly more expensive than the equivalent iPad 2.

Apple launched the follow up to the iPad 2 yesterday, one called "New iPad" and which features a Retina Display, a new chip with better GPU, 4G LTE, a five-megapixel iSight camera and will go on sale on the 16th of March.

You can read through our liveblog of the event, one which lasted nearly 90 minutes and also saw the launch of a new Apple TV and the iPhoto App plus a number of major updates.