Rumor claims Apple set release lower priced 8GB iPad 2, no 64GB iPad 3... wait, what?

Rumor points to lower priced 8GB iPad 2, no 64GB iPad 3

Yet more rumors are surfacing that Apple will release a lower priced 8GB iPad 2 alongside the iPad 3 this month... but this one also claims there won't be a 64GB iPad 3. Digitimes, which has not been extremely accurate lately, says this is to "defend" against Windows 8 tablets coming later this year.

As Apple has scheduled an event on March 7, sources from its upstream supply chain pointed out that the company is expected to launch two iPad 3 models - a 16GB version and 32GB version. In addition to iPad 3, Apple is also expected to unveil an 8GB iPad 2, allowing the tablet PC series to cover different segments and to defend against Windows 8-based tablet PCs, the sources noted.

Lack of a 64GB iPad 3 model sounds very, very strange, given both the original iPad and iPad 2 offer 64GB models. So does the idea of competing with Windows 8 tablets, which have a completely different cost structure to Apple's. Namely, Microsoft makes money licensing Windows. ODMs (Original Device Manufacturers) like Samsung, HP, Dell, etc. make money on the hardware. In the past they've shown a willingness to operate on razor thin margins, driving prices to the bottom, hoping to make it up on volume. That didn't work out for netbooks and it's tough to see it working out for tablets. In either case, that's not a game Apple plays.

Last year, Apple chose not to keep the original iPad around at a reduced capacity and lower price point, however they have done this with older generation iPhones and iPod touches in the past, most recently with the low-end 8GB iPhone 4 when the iPhone 4S was released.

If Apple ends up doing the same with the iPad 2 this year, it could be simply to lower the cost of entry to attract more customers to the iPad platform.

Digitimes previously speculated that Apple would try to hit a $299 price point with a budget iPad, but given Apple's traditional focus on profit margins, that will depend a lot on how low they can drive production costs. Further, since the iPad isn't a subsidized product, Apple can't shift the discounts to carriers the way they do with the iPhone.

Given the lack of subsidies, Apple's profit margins, and the rumored 8GB storage capacity, it's hard to see how appealing even a slightly discounted iPad 2 would be. iCloud and iTunes Match would slightly reduce local storage demands, but not significantly.

Would you find an 8GB iPad 2 appealing at $399?

Source: Digitimes

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Andrew Wray

Andrew Wray is a Salt Lake City, Utah based writer who focuses on news, how-tos, and jailbreak. Andrew also enjoys running, spending time with his daughter, and jamming out on his guitar. He works in a management position for Unisys Technical Services, a subsidiary of Unisys Corporation.

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Reader comments

Rumor claims Apple set release lower priced 8GB iPad 2, no 64GB iPad 3... wait, what?


They need more storage, not less my 64 gb iPad is maxed with photos, vidoes, movies, and apps

Maybe I'm in the minority, but I know a LOT of people who have iPads and only one of them has a 64GB. Perhaps this rumor is accurate and Apple is going to some kind of streaming model like the Apple TV. Purchased iTunes content would be streamable via iCloud and would allow you to operate with less storage.

terrible rumor imo...
but a week before the announcement is usually when the rumor flood gates open. so ill shake it off
Why would they eliminate a 64 gig option... it makes no sense... they already have access to 64 gig flash memory so it would probably be hella cheap for them to just slap it in the iPad 3
now if you said they're doing away with 64 gig and putting in a 128gig that would be more believable.
The only way i see them getting rid of a 64 gig is if they're really REALLY trying to push iCloud... guess we have to wait and see :D

I won't buy an iPad 3 with less than 64gb, especially if it has retina display - app file sizes are getting larger by the day as it is already! I'm hoping for 128gb, but don't suppose that's gonna happen any time soon...

I would not be interested in an iPad 2 @$399. I would be at $299 though. If I'm going to $399, I'll find the extra $100 to get an iPad3 (assuming it's going to be a $499 item)

I don't see them eliminating a 64gb ipad when they just released a 64gb iphone for the first time. I would think, if anything, they would release a 128gb ipad. Videos, music, and pics can fill up 64gb pretty quick.

And an 8gb ipad is pretty close to worthless. Out of the box it will only have about 4gb available.

Exactly, I have a 16gb Wifi ipad2 and its got 2gb free right now.
You put on Avid and iMovie and some apps, some photos and videos
and you fill up that space fast whether you mean to or not.
16gb is the lowest anyone should go.
8gb would have been ok about 2 or 3 years ago, but not now.

Uh oh. If this is true its the start of the end for apple. See what happens when jobs isn't around, apple destroys itself.

I'm going to upgrade from the original iPad to the iPad 3 - 64gb is not a requirement for me or anyone I know. Apple knows exactly what it is doing - and it is doing wonders. I am a total Apple household and wouldn't have it any other way.

No 64ig iZpad, that would be rediculous, 64gig would be a just or me. If there were no 64gig model I wouldn't upgrade t all.

Apple was forced to complete on low cost in smartphone market but Apple passed the cost of iPhone to the Carrier but that can't happen in iPad. It will be interesting what Apple will do for iPad. I think even though in tablet market Apple has 60% market share, on longer term it will be difficult market to compete than the smartphone market specially if Windows 8 will come good.

Sounds to me from the artical they will be competing with hp, dell, samsung ect not Microsoft. 64 gigs is hardware. I do not think hp and dell put out a quality hardware product like apple IMHO .

299.00 would be the number for my dad to finally get an iPad, he settled for a nook and will not admit it was a bad idea.
299.00 and i will buy it for him.

I would not be at all surprised if a scaled-down iPad2 was released at a very low price point, which would dovetail nicely into Apple's desire to break into the education market. Public schools would be much more apt to buy a $300 (or lower) device for all students...

To much for just 8GB of space I think they need cloud space with that to give more value to that price.

I need an iPad for a small $1,000 piano tuning app. Price entry at $500 is too much. I would jump at $299 8GB price point to use over current iTouch I run app on. Do not care about size since I stream all Pictures/music/video from NAS hard drive anyway using "FileBrowser" app and WD Picture app and have all other files in dropbox. Can even access NAS drive from other locations when on wifi. Also can connect wifi only tablet to 4G rooted Android phone for internet when off wifi also.

WOW. Tethering a rooted phone pretty much negates the need to have a second data plan and 3G or 4G iPad 3.

An 8GB iPad 2 would be useless to me without SD Card storage, and that is never going to happen with any iPad. Apple might provide low cost or perhaps higher volume on iCloud to supplement that low storage amount. Of course, Apple could just be hiding a 7" iPad 3 with the same iPad 2 hardware on a smaller screen with the same iPad 2 Rez.

Its just a RUMOR folks! You can get your kickers in a wad when March 7th comes and goes and there is no 64GB model! Until then is just media sensationalized hype....

iPad 2 8GB -> US$349
iPad 2 16GB -> US$399
Both iPad 2 models (wifi only) will be aimed at the low end/education market. Possibility that Apple will make the 8GB iPad 2 available exclusively to students...(maybe at $299?)
The iPad 3 will likely come in 16,32,64 GB varieties with prices being the same as the current iPad 2 prices. Apple will probs keep the 128GB (& above) storage options for Macbook Airs etc...

I will always get the largest size available…the more space I have on my devices, the more stuff I can fill it up with. I have the first gen iPad 64GB 3G model, and will get the iPad 3, with 64GB or 128GB, or whatever they offer up. The trend is for us needing MORE space, not less. Seems VERY un-Apple like. Unless they think we should stream our music over iCloud. Problem is 3G gets eaten up VERY fast.

Yea let's push cloud services with data caps and throttling. Makes sense. Not everyone lives and works in a major city with citywide wifi. Leaving out bigger storage space is stupid. 128 GB iPad would be a game changer. 32GB Max, not so much.

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