While quite a few thought that Apple would release a cheaper ‘iPad Mini’, Apple has proved them wrong by keeping the iPad 2 on the market and dropping the price by $100 to $399, which could tempt even more people who are short on cash to join the iPad adventure. It also allows Apple to compete with other lower-range tablets, such as the Kindle Fire and the Galaxy Tab.
A 3G version will also be available for $529, but Apple have seemingly decided to cut the 32GB and 64GB models, so if you want a larger capacity than 16GB, you might want to look at the brand new iPad models.
Still, the new target market for the iPad 2 is the low-end of the tablet industry, so 16GB instead of 32GB or 64GB should not be that important, especially considering the capacities of other rival tablets.