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Apple's new iPad comes with a cheaper price

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Latest MoneyWatch headlines 01:08

NEW YORK — Apple’s newest iPad will come with a slimmer name, and a lower price.

The iPad Air will be updated to be just called iPad and will cost $70 less than it does now, the company said Tuesday.

The new iPad still has a 9.7-inch screen, but the display is brighter and its price starts at $329, down from $399.

The $329 model has 32 GB of storage and operates via WiFi. A $459 version that includes a cellular connection is also available. Apple’s iPad mini 4 is still available with 128 GB of storage starting at $399. It will be available to order starting Friday, the company said.

It’s Apple’s cheapest iPad, after the company decided to replace the iPad Mini 2, which started at $269.

Apple still controls about a quarter of the tablet market, but the market as a whole has been in decline after several years of rapid growth. According to IDC, tablet shipments fell 20 percent in the final three months of 2016, compared with the same period last year. That’s due in part to people holding on to their tablets longer, CNET reported.

The company has made multiple efforts to boost a slowing tablet market, including the introduction of the larger iPad Pro in November 2015. It was supposed to be Apple’s new flagship tablet with the added capabilities that came with its Pencil stylus and keyboard accessory, but has failed to generate much excitement as a replacement for laptops. A smaller iPad Pro released a year ago also did little to boost tablet sales. 

Sales of the iPad dropped for the 12th consecutive quarter during Q1 2017, CNET noted.

Apple also rolled out a special edition iPhone in the same announcement. The red iPhone 7 is created in partnership with (PRODUCT)RED, a fund that raises money to combat HIV and AIDS in sub-Saharan Africa.

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