Heading into the big announcement next week, Apple iPad 3 rumors continue to heat up mainly around Retina display, quad-core chip, and LTE. Today rumors about the older iPad 2 take the center stage. With the launch of a new product Apple often tends to cut the cost of the current model. Many think the iPad 2 will hit $399, and some even $299. Although they have done this tactic in the past with the iPhone by offering a cheaper iPhone 4 and FREE iPhone 3GS, when it comes to tablets, carrier subsidies don’t come into the picture. On the day of the 4S announcement Apple launched an all new iPhone 4 with just 8GB of memory to replace the other iPhone 4 models. This new memory downgrade pattern is rumored to hit the iPad as well. Rather than continuing to sell the 16GB, 32GB, and 64GB models, Apple just may release an 8GB model of the iPad 2. It is expected that we will see a $75 – $100 price reduction on the iPad 2, which would probably put an 8GB iPad 2 model around a price of $299 – $349. This now becomes and excellent option for consumers looking for a sub $300 tablet. With rumors of an 8-inch iPad tablet arriving in the fall for $199-$299 a lower 8GB could be overkill. What do you think will happen? On March 7th the world will know, stay tuned.