iPad 2 goes on sale in United States

Sunday, March 13, 2011

The new version of Apple Inc.'s tablet computing device, the iPad 2, has gone on sale in the United States at Apple Stores and a number of other retailers (including Wal-Mart, Target, Sam's Club, Best Buy, Verizon, and AT&T), a shift from last year's launch which was only available through Apple's stores. The product will go on sale internationally on March 25.

The device was announced on March 2 at an event at the Yerba Buena Center for the Arts in San Francisco, California. CEO Steve Jobs emerged from sick leave to make the announcement.

The iPad 2 has an all-new design and has several improvements over the original iPad. The device runs on a dual-core Apple A5 CPU. According to Jobs, the CPU's new dual-core capability enhances multitasking and doubles the processing speed. Apple additionally introduced a magnetic 'Smart Cover' accessory that snaps to the front screen of the device along with several new apps ported from the Mac OS X operating system and the iPhone. These include iMovie, GarageBand, and Photo Booth. The new iPad introduces front and rear cameras which enable FaceTime and video. The new tablet is fifteen percent lighter and 33 percent thinner than the previous version—thinner than an iPhone 4—and has beveled edges. It is available in black and white and continues to be capable of ten hours of battery life on a single charge.

The announcement came after months of rumors about the successor to the original iPad. Competitors have designed tablets to compete with the iPad, such as Motorola's Xoom powered by the Android operating system. Apple, who normally follows a yearly product cycle, has pressed its iPad successor into the marketplace almost a full month earlier than usual.

Tablet computers have existed for years but, until recently, have not been popular amongst consumers. Tablet sales totaled 90,000 in 2009. Apple sold nearly fifteen million iPads worldwide in 2010, generating US$2 billion in revenue within three months. In 2010, Apple held a 75% share of the tablet computer market. According to one analyst, even with competition, iPads will still make up at least 20 million of the more than 24 million tablet computers sold in the United States in 2011. An analyst predicted 'conservatively' that 35 million iPad 2s will be sold in 2011. One analyst credits Apple's enormous App Store for the iPad's continued domination. Apple also holds an advantage in price over other tablets, many of which are still first generation devices. An analyst at J.P. Morgan predicts an overabundance of tablets caused by faltering demand. This could have drastic effects on competitors.

The iPad connects to the Internet over Wi-Fi and 3G models of the new device can connect to the wireless networks of AT&T or Verizon Wireless. The iPad 2 will start at US$499—the same starting price of the original iPad. The equivalent model of the original iPad has been reduced to US$399.

Timeline of Apple touchscreen devices

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Sources

CBS News Staff. "iPad 2 hits shelves tomorrow! What does it do?" — CBS Interactive Inc., March 10, 2011
"Apple May Sell 600,000 IPad 2s in Debut, Outpacing First Model" — BLOOMBERG L.P., March 10, 2011
"iPad 2 tablet launched by Apple's Steve Jobs" — BBC, March 2, 2011
Associated Press. "A Glance at Differences Between iPad and iPad 2" — ABC News, March 2, 2011
David Goldman. "IPad 2: Thinner, faster, and with a Steve Jobs surprise" — CNNMoney.com, March 2, 2011
Financial Post. "What's new in the iPad 2?" — National Post, March 2, 2011
Ed Baig. "Apple launching iPad 2 on March 11" — USA Today, March 2, 2011
Jordan Robertson and Jessica Mintz, AP. "Jobs breaks from medical leave to unveil iPad 2" — Forbes, March 2, 2011
"Apple Reports First Quarter Results" — Apple Inc., January 18, 2011
"Apple Reports Fourth Quarter Results" — Apple Inc., October 18, 2010
"Apple Reports Third Quarter Results" — Apple Inc., July 20, 2010

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