Apple replaces iPad 2 with iPad 4 and launches cheaper version of iPhone 5C

The new 8GB iPhone 5C priced lower than the 16GB version, while iPad 4 is lowered to the price of the iPad 2.

A worker cleans glass in front of an iPhone 5C advertisement at an apple store in China. Apple has launched a cheaper version of the 5C in a number of locations around the world. Wong Campion / Reuters
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Apple said it would offer an iPad 4 tablet in place of the mid-range iPad 2 at the same price and the company launched a cheaper, lower capacity version of its plastic-backed iPhone 5C in Europe, Australia, and China.

The iPad 4 is available at US$399 (Dh1,465) for the 16GB Wi-Fi model and $529 for the 16GB Wi-Fi + cellular model at the four major US carriers - AT&T Inc, Sprint Corp, T-Mobile US and Verizon Communications.

The fourth-generation iPad, which has a 9.7-inch Retina display and supports 4G carriers worldwide, was launched in 2012, while the iPad 2 was launched in 2011.

Apple discontinued the iPad 4 last year when it launched its current flagship tablet, the iPad Air. The company had cut the price of iPad 2 to $399 in 2012.

Tablets based on Apple’s iOS platform held 36 per cent share of the market in 2013, trailing those based on Google’s Android software that had 62 per cent share, according to the research firm Gartner.

Apple also launched on Tuesday an 8GB iPhone 5C priced at £429 (Dh2,615) £40 cheaper than the 16GB version, according to the company’s UK website.

The 8GB iPhone 5C will also be available in France and Germany.

“We believe this newly configured device will have a lower gross margin as we estimate the difference in cost to Apple for the 8GB of NAND is $5 to $10,” Cross Research analyst Shannon Cross wrote in a research note.

Analysts have said earlier that the iPhone 5C, which is about $100 cheaper than the iPhone 5S, was unable to grab market share from rivals offering lower-cost phones based on Android.

Apple’s shares were up 0.5 per cent at $529.60 in noon trading on Tuesday on the Nasdaq.

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