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Originally Posted by ProfCrash
The IPod Touch starts at $199 so I doubt that the 7 inch IPad will cost less then that. Heck, the largest IPod Touch is $399. And that is a four inch screen which many people are buying.
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Yeah and the iPad 2 16GB Wi-Fi is now down to $399 and the original iPad (refurb) is down to $299. There's some overlap with Apple products. People buy based on what product and form factor they want.
We won't be seeing a 7" iPad costing less than the iPod Touch but I don't think it's completely out of the realm of possibility that Apple might release one for $249. They could employ some of the cost-saving techniques they use for the iPhone/iPod: no GPS, lower quality cameras, lower-quality display, etc.
We're due for an iPod refresh soon (actually overdue since one wasn't released last year) and given previous iPod Touch refresh cycles, we'll probably see a dual-core Apple A5 processor on the new Touch - same as the one used on the iPhone 4S and iPad 2. If Apple can put the A5 on a $199 iPod Touch, they can probably make a 7" iPad and sell it for $249 while keeping their healthy profit margins.