iPad iPad 2 still at $399....

STC said:

I know I'm a bit late, but I just read about the iPad Air announcement. What shocked me was that the 16gb iPad 2 is still being manufactered and it's still $399.

This shows that this device has the longest legs ever. Prob a good time to sell my iPad 2 and upgrade to the Air.

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My guess is Apple knows nobody in their right mind will buy it for that price, but, as people have stated, school and business mass purchases may still occur at discounted prices, and Apples decides to keep the price high to not make those discounts make it too cheap and drop their profit.

True nobody in their right mind should buy one for that price. But there weren't too many options for Apple.

iPad mini first gen = A5, non-retina, 100 bucks cheaper than new model
iPad 2 = A5, non-retina, 100 bucks cheaper than new model

retina mini = A7 + retina
iPad air = A7+ retina

It is a strategy to force more people to buy the Air. Just like the 5c is aimed to force folks to the 5s phones.

Of course there will be a few purchases but nobody in their right mind would buy the ipad 2/iphone 5c.

Because the iPad 2 accounts for 25% of the total iPad sales.

There've been several discussions on this. The pattern of replies show that people buy the 2 when they are buying for other people / someone else.