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Apple begins reducing iPad 2 orders ahead of expected next-gen iPad(s)

Thursday, December 29, 2011 · 5:38 pm · 16 Comments

“Apple has begun reducing orders for the iPad 2 ahead of the unveiling of a new third-generation iPad, but it’s not yet known whether Apple will keep the iPad 2 around at a discounted price,” Sam Oliver reports for AppleInsider.

“Sources in Apple’s supply chain told DigiTimes that orders for the iPad 2 are gradually dropping ahead of an anticipated third-generation iPad,” Oliver reports. “While iPad 2 orders are being reduced, orders for the next iPad, reportedly set to launch in March of 2012, remain steady.”

Oliver reports, “Various reports have suggested that Apple will continue to sell the iPad 2 at a discounted price after it launches a third-generation iPad. Apple already employs that strategy in offering the iPhone 3GS, first released in 2009, as an entry-level handset, in addition to the iPhone 4, released in 2010, and iPhone 4S, which just launched in October.”

Read more in the full article here.

Categories: News

Tags: iPad 2, iPad 2S, iPad 3, iPad suppliers

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Comment Feed

16 Comments

HughB

Thursday, December 29, 2011 - 5:50 pm · Reply

New model? Or maybe demand for iPad 2 has slacked off? I am worried about this quarters iPad numbers. Hoping My fears are wrong.
- Rorschach
  
  Thursday, December 29, 2011 - 6:21 pm · Reply
  
  after all this time, you still believe FUD like this? Share price looks like its going up, let’s spread some uncertainty and get it lower again. Analyst BS.
Abrey

Thursday, December 29, 2011 - 6:00 pm · Reply

The excerpt is slightly misleading. It is referring to manufacturing orders, not enduser purchases.
- Sucker
  
  Thursday, December 29, 2011 - 7:07 pm · Reply
  
  It’s also misleading BECAUSE CHRISTMAS WAS 4 DAYS AGO. Of course orders are gonna drop immediately after the holiday whether or not a new model is coming soon.
Spark

Thursday, December 29, 2011 - 6:01 pm · Reply

Another DigiTimes report. Truth or designed to stifle current iPad sales? What say yee?
- breeze
  
  Thursday, December 29, 2011 - 6:14 pm · Reply
  
  Designed – not in Cupertino
castelbuono

Thursday, December 29, 2011 - 6:10 pm · Reply

DigiTimes…Misleading News R Us
RJB

Thursday, December 29, 2011 - 6:20 pm · Reply

Hope they keep the iPad 2 regardless of price.
James

Thursday, December 29, 2011 - 6:29 pm · Reply

Yeah, Apple won’t follow their successful iPod strategy with the iPad line. Right? Bueller, Bueller?

iPad 2 $399, iPad 3 $499, iPad 3+ $599

Hey, who knows, maybe iPad 2 $299? Then the Fire is DOA.
Dave Marsh

Thursday, December 29, 2011 - 6:52 pm · Reply

The Fire is a delivery system for Amazon sales. It’s nothing like the iPad. Different customers. I’m happy to buy Amazon stuff using my iPad app or browser.
rp2011

Thursday, December 29, 2011 - 7:09 pm · Reply

The only problem with having older generations available for extended periods of time, is that with the new one having a newer processor, like 4 core instead of one, it either drags Apple down in what they can forge forward with, or buyers of the older ones will complain of missing features on their new old iPads.
- John
  
  Thursday, December 29, 2011 - 8:30 pm · Reply
  
  It will be quite interesting to see how quickly the iPhone 3GS is abandoned wrt software updates. As long as Apple keeps selling it, it can’t in good conscience stop updating it, and if they do what they did with the 3G (stop updating very soon after stopping selling it) they’ll be in for some tech blog angst.
  
  Not that tech blog angst isn’t something they’re highly experienced with.
doggonetoo

Thursday, December 29, 2011 - 8:31 pm · Reply

Apple make 90% of their money from the hardware. Apple sell the older iPhone models because they are still subsidized. The iPad is not subsidized and has a small market volume. Therefore it makes sense that they only sell off remaining iPad2 inventory once the iPad3 is released.
Apple need to keep up their ASP to ensure their margins are good. Having the iPad2 available at a lower cost with cannabilize the new iPad3 model.
- Thomas65807
  
  Friday, December 30, 2011 - 8:38 am · Reply
  
  “The iPad has a small market volume.” I don’t think so. Apple will sell 13+ million iPads this quarter … or 4+ million per month.
  
  “Therefore it makes sense that they only sell off remaining iPad2 inventory once the iPad3 is released.” It may make sense to you, but Apple continued to sell the original iPad after the iPad 2 was released. So it’s very likely it will sell iPad 2 after the release of iPad 3. The iPad 2 will contain older-generation technology which costs the company less to produce, so it can reach a lower price point than the iPad 3.
  
  The iPad 2 will “cannabalize the new iPad 3 model.” As long as it earns a good profit margin on the 2, who cares? But more to the point, a low-price iPad 2 will take sales away from Android-based tablets.
- mshahsavar
  
  Friday, December 30, 2011 - 2:43 pm · Reply
  
  It is all about the margins. Apple should have by now reduced the component cost and increased margins on iPad2 i.e. cheaper ram, screen, battery. A $100 or even better $150 drop on iPad2, if necessary create a new iPad2 with 4GB for the low end of the market for $299 aka new iPhone4.
  
  iPad3 with HD screen, new CPU, new battery, and maybe even RFID, better camera, and of course SIRI and you have enough differentiation to have both versions while Apple makes their usual margins. We are happy, investors are happier because Apple will start to address a wider audience.
  
  Many specially those who sell so called news to get clicks will try to pretend Fire is competing with iPad. Everyone with an ounce of analytical min would know you are either in the market for quality and get the iPad or you simply cannot afford it and are fooled into buying Fire or many other variations.
  
  I for one cannot wait to upgrade both my ipad2s to iPad3/HD.
The Other Steve

Thursday, December 29, 2011 - 11:02 pm · Reply

I’ve been waiting for 6 months for the Nikon D4 to come out. Oops, I have D4 on he brain. A new iPad would also be nice. I can use it to download the manual for the D4. Damn, got to stop doing that.