When iPad appeared on the market for the first time, it was pretty awesome. It was like a device with all these apps, using iPhone as its base for the product, but with some characteristics of the Mac. With a relatively low price for something that is completely new to this market, it was an absolute boom. It revived the image of Apple as something “cool”, fresh, trendy, call it however you like. Apple hit the spot with iPad, no doubt about it.

Then iPad 2 came along. Brought it to a brand new level of technology. That much that Microsoft is just not responding with any product whatsoever that could possibly compete with Apple. Now the problem that Apple had on their back is basically: What to do with the new iPad to keep up with the trend of the amazing new products?

Photos: Apple

They did something that they have been doing for years now: came up with something that this world (read: market) has never seen or experienced before. With the new Retina display, 5 mega-pixel camera, and all other sorts of cool stuff on it, the new iPad is very affordable at its beginning price of $499. Good job, Apple. New Product Policy 101 is aced.

The question that is pitting itself in front of this awesome device is: How will this affect the iPad (and related gadgets) market? What is really interesting about the new iPad is the price. It costs as much as iPad 2 when it hit the Apple stores. If Apple claims to have a great product (and it certainly does), why wouldn’t they increase the price. Also, if the new iPad starts at $499, how much will iPad 2 cost in a week or two? There is no doubt that Apple planned all this very cautiously, but it is just unclear why wouldn’t they increase the price of a product whose elasticity of demand is just growing. When it comes to competition, unless Microsoft cements their new Windows 8 on similar tablets and Samsung creates something really incredible, there is no real competition for the new iPad.

The amount of power on the market that Apple possesses at the moment is incredible. They are compatible with prices, offer the most and are expanding their customer groups so fast that nobody can follow them. The general trend of depicting Apple as a cool brand is getting stronger every day and we could expect some very surprising results in sales for the new iPad.