Apple’s decision to keep the iPad 2 available for a lower price is turning out to be a good business move. The iPad 2 is definitely attracting the attention of the budget-conscious consumer, suggesting it’s taking sales away from lower priced competitors like the Kindle Fire.
According to new data from Consumer Intelligence Research Partners (CIRP), the breakdown in sales of the iPad 2 and the new iPad between February and April of 2012 were roughly similar. The research firm says that since the March 16th launch date of the new iPad, that device accounted for 59 percent of total iPad sales, while the iPad 2, which costs $100 less, accounted for 41 percent.
So basically, demand for the second-generation iPad isn’t all that much less than the demand for the new iPad. And Apple says, “the new iPad is on fire. We’re selling them as fast as we can make them.”
“The lower price of the iPad 2 seems to be attracting many new buyers, and bringing thriftier customers into the fold,” CIRP partner Josh Lowitz told AllThingsD. “In contrast with how customers behave when Apple launches new iPhone models, our data suggests that a lot of iPad buyers bought iPad 2s right up to and after the launch of the new iPad.”
According to the latest data from IDC, Kindle Fire shipments dropped from 4.8 million units in the fourth quarter of 2011 to less than 750,000 units last quarter. While the iPad’s share rose to 68 percent from 54.7 percent.
If indeed the iPad 2 is selling as well as reports suggest, there could be a correlation between the demand for it and the weakening demand for the Fire.