iPad 2 Gets $100 Price Cut After "The New iPad"

Apple is dropping the price of the iPad 2 by $100 following its announcement of the next-gen iPad, which it's calling "The new iPad" instead of the iPad 3 or iPad HD. This price reduction of the iPad 2 will help round out Apple's tablet lineup to cover more market segments.

The news isn't too surprising, since many had speculated that Apple had this coming. The price drop could really cut into competitors with tablets that are vying for the budget-minded market. The reduced price will also help extend the reach of the iPad into hands of students, schools, and other users that may not have been able to buy in previously due to cost.

Therefore, the iPad 2 will now be priced starting at $399 for the 16GB WiFi-only model and $529 for the WiFi plus 3G model. The iPad 3, or "The new iPad" as Apple is calling it, is priced at $499 for the 16GB WiFi-only model and $629 for the WiFi plus 4G LTE model. This is Apple's biggest rollout of iPad SKUs to date.