Apple is apparently considering the release of a $299 iPad to combat the slice of market share it lost this holiday season to the Kindle Fire and Nook. The iPad $299 model will be launched according to the strategy that the company has used with the iPhone, which it has offered as a lower-priced, older technology option at an aggressive price. It is thought that the $299 iPad will be a low-end, 16GB iPad 2 WiFi-only offering that will continue after the new iPad 3 is released.

Apple was impacted by the holiday sales of the Kindle Fire and Nook much more than it expected; and likely the company feels that this is the only way that it can regain its stride with competitors. It is expected that the new iPad 3 will add a number of new features, including an 8 megapixel camera as well as a new updated high resolution screen.

It is anticipated that Apple will be hosting an event to make the announcement; but rumors of a MacWorld launch are false, according to our sources in the field.