So, the iPad4 goes back into production to replace the iPad2 which is now going out of production. The iPad4 now becomes the 'entry' iPad, selling at $399. http://www.engadget.com/2014/03/18/apple-ipad-2-retina-fourth-gen/ This is really about setting a low end model that isn't completely overshadowed by Amazon, Samsung, etc. units. The iPad2 was pretty long in tooth at this point and needed to be kicked.