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I'm also going with reason 2. My mother still happily reads on my old 1st generation iPad, and I'm not planning to replace my own 3rd generation iPad any time soon yet.
iDevices are just far too expensive to upgrade yearly even if there was a "need" for it (a 32 GB WiFi-only one easily goes for my entire month's income).
As it is, iPads are expensive and last easily just fine for several years, so unless one absolutely must have the newest version every time one is released and has a whole lot of disposable income.
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