Apple Replaces iPad 2 with iPad 4 and Launches Cheaper iPhone 5C

Launches Cheaper iPhone

Apple Inc, the Cupertino based tech giant has announced that it would replace iPad 2 with iPad 4 Tablet. The price would be same. At the same time, Apple releases a cheaper version of iPhone 5C for Australian, Chinese and European markets.

The iPad 4 is available at $399 for the 16GB Wi-Fi model and $529 for the 16GB Wi-Fi + cellular model at the four major U.S. carriers – AT&T Inc, Sprint Corp, T-Mobile US Inc and Verizon Communications Inc.

The iPad 4 will arrive in two variants; 16GB Wi-Fi model and 16GB Wi-Fi+cellular model. The Wi-Fi model will cost $399 and the Wi-Fi+cellular model will cost $529. The phone will come in contract with major US carriers AT&T Inc, Sprint Nextel, Verizon and T-Mobile.

This move could benefit Apple because of two chief reasons; first, iPad 2 has been in the market for almost last 3 years. There’s literally nothing new that users could expect from it. Secondly, iPad 4 which supports 4G carriers which iPad 2 doesn’t. Thus, Apple might see its sale of fourth-generation iPad swelling again.

As Android phones have been making deeper inroads into the Smartphone market, replacing iPad 2 with iPad 4 is no doubt an effective strategy. User satisfaction is what Apple has always sought after and iPad 4 generates the higher level of user-satisfaction because it offers 9.7-inch retina display.

In terms of Pricing, there won’t be much difference as Wi-Fi only iPad 4 model would cost the same as iPad does. The LTE 16GB iPad will also cost the same as the 3G model of iPad 2. The 30 old pin connector will no longer be in use, however, as it will be replaced by the next-gen smaller ‘Lightning’ dock.

As for the 8GB iPhone 5C, it is priced at $710. The difference in price from its 16GB alternative is nearly $66. Apple might have launched this cheaper iPhone 5C for those segment of users, who can’t afford the expensive iPhone 5S.

Regarding the cheaper iPhone 5C, an analyst called Shannon Cross said, “We believe this newly configured device will have a lower gross margin as we estimate the difference in cost to Apple for the 8GB of NAND is $5 to $10,”

Apple’s stock price in NYSE has seen a little increase today. It is up 0.70% from previous day’s closing of $526.74.