Apple may launch a new entry-level 8GB iPad 2 next week alongside the iPad 3, reports DigiTimes, in order to make the device as affordable as possible (and to differentiate it from the iPad 3). The report also states, however, that Apple will not be launching a 64GB version of the iPad 3, offering only 16GB and 32GB models.
While a cheaper iPad 2 seems fairly plausible to me, the idea that Apple would do away with a 64GB option for the iPad 3 seems wildly improbable. Apple has offered 64GB versions of the iPad since the very beginning, and it simply isn’t at all like Apple to take a step backward in their product offerings.
Even though Apple is very focused on iCloud right now, I very much doubt they would limit the amount of storage in their devices just to encourage adoption of the service. Only music can be stored on iCloud at the moment, which can only be accessed if you have a solid internet connection. People that have videos or lots of apps, or who want to listen to their music without needing an internet connection would be significantly put out by such a move.
It’s also worth considering that if the iPad 3 does get a Retina display, which is more or less expected at this point, the file sizes of apps and video would increase as well. It simply wouldn’t make sense for Apple to offer less storage in the iPad 3. If anything, I’d expect them to introduce a 128GB version!