Discount drives iPad 2 sales ahead of new model launch

Apple aficionados are clamouring to buy iPad 2s despite a new launch by the company on Wednesday — rumoured to be the third generation of the tablet computer. Apple has lowered the prices of the 16GB and 32GB iPad 2 by $50 (Dh184) to $449 and $549, respectively, encouraging buyers to step in, and analysts say that demand is showing no sign of abating. "The iPad 2 is still leading the competition in terms of technologies after almost a year," said Richard Slim, a senior analyst at NPD DisplaySearch, adding that the small discount in prices would probably drive sales even higher. Local online auction and e-commerce sites were teaming with iPad 2 listings yesterday, with almost 3,000 on international site eBay and reduced prices on UAE sites. But analysts say that even if the iPad 3 is announced later on Wednesday, iPad 2 prices are unlikely to fall very far. Omar Kassim, founder of Dubai-based e-commerce site JadoPado.com, said iPad 2 stockpiles are drying up in the country, meaning that prices will remain strong. Apple is expected to unveil the iPad 3 at 10am UAE time. It is also expected that the iPad 3 will be available on March 16 in the US, with observers of Apple citing as evidence a new store opening in Houston, Texas. If it is launched on March 16, the US version of the product is likely to be available on e-commerce soon after, but the consumers will need to pay a hefty premium to own the iPad3. A similar situation was encountered by buyers when the iPad 2 was unveiled. Since the first iPad came out in 2010, Apple has sold 55.28 million. According to technology research firm IDC, Apple controls almost two thirds of the tablet market, with Amazon's Kindle and Google's Android operating system dominating the remaining share. Slim said Apple captured 59.1 per cent of the market in the fourth quarter of last year by selling 18.7 million. Apple is expected to sell around 55 million this year. Secondary markets "Secondary markets are good because they give a wide range of consumers a chance to try a brand's products. Most of the customers and retailers are eagerly looking for the next-generation iPad and seek to dump their old iPads and make quick money before it is too late," said an online retailer, declining to be named. It's expected that the iPad 3 will be available on March 16 in the US as well as in other key launch markets. This is exactly the same as last year, when the iPad 2 became available nine days after the announcement.