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More evidence surfaced that Apple will still sell iPad 2 as an entry level iPad when the company release the next generation of the device.
Taiwanese publication DigiTimes provided more evidences Apple will continue to offer iPad 2 amidst the release of iPad 3. According to the sources of the publication, Apple suppliers will ship 25 million lower resolution (1024×768 pixels) iPad 2 displays in 2011 even after Apple launches of iPad 3. The report claims that Apple suppliers are expected to ship 40 million “Retina” (2048×1536 pixels) displays in 2012. To get a perspective, Apple suppliers are estimated to have shipped 48 million LCD panels in 2011.
In the fourth quarter of 2011, Apple shipped less than a million panels for iPad 3. However, the Cupertino-based company will continue to increase the volume of the shipment of the panel that are used for the new version of iPad. The sources pointed out that, 6 to 7 million panels will be shipped on the first quarter of 2012 and will escalate to 10 million panels on the third quarter of the year.
Currently, Apple has decreased the shipments of iPad 2 panels from 16 million panels in the third quarter of 2011 to 10 million panels in the fourth quarter. This first quarter of the new year, the panel shipments amounted to 7 to 8 million units. According to the sources of the publication, the shipments for the iPad 3 will surpass that of iPad 2.
Offering a lower version of the device proved to be good for Apple business. Last October 2011, Apple released the latest iPhone, iPhone 4S. However, the company still offered the older generation of iPhone at a lower price. There were reports that the iPad 2 display panels approaching the rumored number would be indicative of continued iPad 2 production well beyond the introduction of the iPad 3.
It seems that a cheaper iPad 2 with 8GB storage for $299 or $349 will also help Apple to compete with rivals such as Amazon who launched their Android-based tablet - Kindle Fire last year for only $199.