Elia Freedman has an interesting take on why Apple's is keeping the iPad 2 around. Some conventional thinking is that it's for the education market since they buy so many iPad 2 boxes. The assumption why they buy so many old iPads is it's based on price, but there are likely other reasons.
My daughtersí elementary school bought 40 iPad minis at the end of last year and those systems have mostly been used by the fourth and fifth grade classrooms. Realizing they could use about 10 more devices, the school moved forward with purchasing this fall. I advised the principal to wait until after the October 22 event, believing that retina iPads would replace non-retina iPads and be better bang for the buck, so to speak.
I'd assume the iPad 2 has some healthy margins. If Apple wanted, it could be more aggressive on pricing and keep margins similar to current iPads. Why doesn't Apple do that? One reason could be to maintain pricing floors for the other product, but then again, Apple could simply make the iPad 2 only available to education or business customers. Apple often sells low end iMacs and laptops with stripped down configurations just to education.
A better reason may be Apple is simply meeting demand. Customer segments still want this old iPad for reasons stated above, and Apple is actually charging them a premium to keep churning them out.
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