In the US, yes. But if the rumors are true about a staggered international roll-out, then that danger gets mitigated. If Apple is still rolling out iPad 1 in new countries during the period between the announcement of iPad 2 and sale in the only market in which it will be available, the losses could be blunted.
But if you stop there, the substance of my point evaporates. According to other rumors, Apple will be selling the first iPad around the world for quite some time after iPad 2 is available exclusively in the United States. So while sales of iPad 1 may dry up in the US after announcement, there's no reason for people around the globe to stop buying. (Aside from the obvious one, I guess.)
I think you've failed to grasp it, actually. While you think about it some more, consider that additionally, Apple could reduce the price of the version 1 hardware to help prop up sales in the interim until the release of iPad 2. Which, a lot of Apple observers expect that iPad 1 will continue on for new sales as a low-end/low-priced option. How that dove-tails with the international rollout, I'm not exactly sure.
Hurry up Apple. My kids have taken over control of my iPad. I need my own.
The only question is do I order one or two? Buddy, I haven't failed to grasp anything. If anything you're the one that doesn't understand the fact that your international argument is pointless. Your suggestions are unheard of in Apple's world. Give me one example where they have dropped the price of the product they are going to be releasing soon, chances are you won't be able to find anything as of recent if at all. The international rollout is irrelevant in this conversation, stop bringing it up. We are talking about the US release. Whenever Apple decides to release the iPad 2 in Afghanistan, Portugal, Russia, etc. is not of concern to the discussion at hand. A month-long lead time WOULD dry up iPad sales in the US and leave a bunch of people who just got an iPad for Valentines day(which Apple is pushing) still be in the return period. You can keep on playing the international drum but the last day of February is still in the return period for iPad's purchased on Valentine's day. An announcement in February is not happening, and the original source posted on this article is sketchy at best with question marks and guessing written all over the damn article.
Yeah, like I thought, you didn't understand what I was saying. Apple sells a brand new iPhone 3GS alongside its iPhone 4 offerings. What I meant is that Apple will likely keep an iPad around alongside iPad 2 as a low cost offering.