As part of its third-generation iPad launch, Apple dropped the price on the older 16GB iPad 2 to $439 (or $569 for the 3G version). In what we suspect will be the first of a round of an undercutting war, Dick Smith is selling the same models for $399 and $549 respectively, and offering discounts on other iPad 2 models.
Dick Smith is spruiking the 32GB model for $499, or 3G for $649 (compared to Apple’s old pricing of $689 and $839) and the 64GB iPad 2 for $599 (3G $749; Apple had them for $799 and $949).
One minor disadvantage: the Dick Smith deal is in-store only, while Apple will deliver for its price. But it’s still a saving, and Apple is no longer selling the 32GB and 64GB iPad 2 models on its site. I imagine other retailers will see similar price adjustments over the next 24 hours or so.