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iPad 2 prices could drop to $299 to battle Kindle Fire

By: Aseem Gaurav on January 5, 2012

After internet rumors ran rampant that Apple might launch the next version of its highly popular iPad next month, reports from AppleInsider and DigiTimes say that the price of iPad 2 entry-level version will drop from the current $499 to $399.



The speculations are further fueled by the fact that Amazon.com's Kindle Fire (along with other Kindle products) did amazingly well during the holiday season, which may result in Apple making changes to its strategy to compete against the iPad. Amazon had said the sales of Kindle Fire set new records as it sold more than a million Kindles per week during December, and millions of Kindle Fires during the holiday shopping season. Among the Kindle family, the Kindle Fire led the pack, followed by the Kindle Touch and the non-touch Kindle e-reader.



The apparent upsurge in sales may be due the cheaper price tag of Kindle Fire, which costs only $199 without a contract, much cheaper than $300 price tag of cheapest iPad 2 available, the 16GB WiFi only model. Although Apple’s highly popular tablet has large screen, Amazon believes the bigger is not better, as the Kindle family tablets are much portable and a 7-inch size is perfect of a tablet.


Analysts had forecast the sale of 16 million iPads during the 2011 holiday season, instead the device instead registered sales of 13 million units. However, Apple’s lower sales numbers were compensated by record sales of iPhone, which exceeded 29 million units, two million more than anticipated.

At the moment, Apple sells iPad 2 Wi-Fi only models: $499 for 16 GB, $599 for 32 GB and $699 for 64 GB. Apple has firm control over the higher end of the tablet market, but strong sales of Kindle Fire may prompt Apple to change strategies to maintain sales momentum.

Comparison:


Price
$199
$300 less than iPad 2
$499

Screen
7”, in-plane switching display
9.7", in-plane switching display
Pixel Density
169 ppi & more than 16 million colors
28% higher pixel density than iPad 2
132 ppi & more than 16 million colors
Weight
14.6 oz
iPad 2 is 46% heavier
21.28 oz
Content
Movies, shows, songs, games, apps,
magazines & books from Amazon 
Movies, shows, songs, games, apps,
magazines & books from iTunes
Breadth of
Ecosystem
Most Amazon content can be enjoyed
on your Kindle Fire and many other
devices, including iPhone, iPad,
Android, BlackBerry, Windows 7
phones, internet-ready TVs, Roku,
TiVo, and through your web browser
Most Apple content can only be
used on select Apple products
Buy Once, Enjoy
Everywhere
With Whispersync, your book library,
last page read, notes, and highlights
sync across your devices and you can
stream a movie on one device and finish 
it on your TV, without losing your place
iBooks syncs only on Apple
devices - no sync for movies
E-mail
Yes
Yes
Web Browser
Amazon Silk, the cloud-accelerated
web browser
Safari
Flash Support
Yes
No
Processor
1GHz dual core
1GHz dual core
Storage
8GB flash memory + free cloud storage 
for all your Amazon content so you
never run out of space
16GB flash memory + free cloud storage 
for iTunes content excluding movies
Battery Life
Up to 7.5 hours of video playback, 
with wireless off
Up to 10 hours of mixed use
Multitasking
Yes
Yes
Wireless
Capability
Wi-Fi
Wi-Fi
Speakers
Stereo
Mono
Prime Instant
Video
Amazon Prime members can instantly
stream nearly 13,000 popular movies &
TV shows at no additional cost
N/A
Kindle Owners'
Lending Library
Amazon Prime members can borrow 
from thousands of popular books 
at no additional cost
N/A
 

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