Apple drops iPad 2 price to $399

Alongside the introduction of the ‘new iPad’, this morning Apple dropped the price of the previous generation iPad 2, which now starts at $399 for the 16GB Wi-Fi version and $529 for the 16GB 3G-capable version.

Apple’s strategy of keeping the previous iPhone hardware model around and selling it at a discount has made it possible for the company to compete in the lower end of the prepaid cellphone market, with AT&T going so far as to offer the iPhone 3GS for free on contract.

While we don’t expect the iPad 2 to be free any time soon, it will be immediately more attractive to tablet buyers who may have been eyeing an Android device like the Kindle Fire.

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