With the upcoming launch of Apple’s iPad 3, it is likely that the current iPad will see a significant price drop once the next generation model is released.

According to sources close to Apple’s supply chain, the company is planning to release two separate versions of the iPad 3. One of them targeting the high end segment while the other will be geared towards the mid-range.

Digitimes believes that the two new iPad models will both come with an A6 processor with the high-end model including a high resolution panel and the mid-tier model featuring the same grade of panel as the iPad 2 at (1024x768).

With the addition of the iPad 3 into the market, Apple will now have every price segment in it covered, from entry-level to high-end. The company’s pricing strategy for its iPad series sets the standard in the tablet market. It could drop the price for its device to as low as $299, $349 or $399 for Wi-Fi only models.

Rival tablets such as the Barnes and Noble Nook and Amazon Kindle Fire are in the $199-$399 price range. If Apple decides to cut the price on the iPad to $299 it could have serious effects on the low end market. These lower-end tablet makers would most likely have to rethink their pricing strategy, according to Digitimes.

The Amazon Kindle Fire debuted late last year and sold relatively well during the 2011 holiday shopping season. Some tech critics praised it as the first real competitor for the iPad, however, others noted that this device could not compare to Apple’s in terms of specs and capabilities.

Apple has dominated the tablet market since releasing the original iPad in 2010. It seems that the company is still focused on maintaining this with the release of the next generation model.

 The Christian Post Daily Report 01.03.12