Reason No. 1 to Skip the 'New iPad': Apple Cuts Price of iPad 2 to $399

Apple Cuts Price of iPad 2 to $399 Apple (AAPL) unveiled its new iPad Wednesday with its usual splash and pizzazz, and enthusiasts will probably storm Apple Stores and the company's website to pre-order the snazzy new tablet, with its HD video-recording and 4G LTE capabilities.

But there was also some good news for those who don't need the absolute latest bells and whistles: Apple has lowered the price of its iPad 2 to $399, according to its website.

And in addition to saving customers $100 on the WiFi version, Apple will keep the baseline model at 16 GB of RAM.

apple ipad

Previously, the rumor mill had predicted that Apple would introduce a cheaper 8 GB version of its iPad 2. That move was expected to be Apple's response to rival tablets such as Amazon's (AMZN) Kindle Fire and Barnes & Noble's (BKS) Nook Color, as well as the many less-popular tablets that run Windows 8.

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At $399 for an iPad 2, shoppers can save a pretty penny with very little sacrifice on features. The new iPad is slated to hit stores March 16 and cost $499 for 16 GB with WiFi, or $629 with 4G LTE. The price rises to $599 for 32 GB, or $729 with 4G LTE, and $699 for 64 GB, or $829 with 4G LTE.

apple ipadSavvy buyers mainly need to ask themselves whether they really need HD 1080p video-recording capability or the speedier network connection that comes with the new iPad. Yes, it also touts a richer resolution and a snappier 5MP iSight camera. But if you were primarily lusting after an iPad for its FaceTime feature and its lightweight, go-anywhere qualities, why not pay less and pick up an iPad 2?

Motley Fool contributor Dawn Kawamoto owns no stock in any of the companies mentioned. She has been known, however, to FaceTime with her family members. The Motley Fool owns shares of and Apple. Motley Fool newsletter services have recommended buying shares of Apple and and creating a bull call spread position in Apple.

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