Apple's is reducing the price of the iPad 2 with the release of the new iPad, boosting the company's educational initiatives by making tablets more affordable for schools.
The new iPad, coming out later this week, will retail for $500, with the iPad 2 starting at a reduced price of $400.
The price drop comes as Apple makes forays into the educational market. The company said in January it wants to revolutionize the textbook industry with iBooks 2 and iBooks Author, and announced partnerships with educational publishers like McGraw Hill, a company with over 50 existing iPad textbooks, to make them more affordable. However, iPads are still expensive during a time when most schools are cutting budgets.
McGraw Hill Education stands by its recent partner, and believes the reduced price on the iPad 2 will propel the device into schools.