Rumor Mill Ramps Up Production of Cheaper and Smaller iPads - John Paczkowski - News - AllThingsD

There may yet be a few price elasticity curve surprises in this context

The most plausible: Taiwanese trade mag Digitimes’ claim that Apple plans to sell a cheaper, 8 gigabyte iPad 2 alongside the iPad 3 in a play for the lower end of the tablet market being staked out by Amazon’s Kindle Fire. I’ve heard nothing about such a plan, but it makes good sense. A new, low-capacity iPad 2 — priced at, say, $299 or even $349 — could wreak havoc on the low-end tablet market, clearing out a raft of struggling competitors and making the choice between Kindle Fire and iPad a much more difficult one for those consumers weighing the two.

Rumor Mill Ramps Up Production of Cheaper and Smaller iPads - John Paczkowski - News - AllThingsD