Apple is to use lower priced components in the iPad 3 to ensure the third-generation tablet remains price competitive with the influx of new Android tablets, new reports have claimed.

Whilst the retail cost to consumers remained the same Apple reportedly saw component prices increasing from the original iPad to the second-generation model thanks to the inclusion of cameras and a reduction in available touchscreen panels. New reports, however, suggest the Cupertino-based company is to once again reduce costs.

“Apple is now “more willing” to ship various integrated circuit modules from Taiwan-based IC design houses as a way of reducing iPad’s bill of material,” anonymous sources to a Digitimes report have claimed.

They added: “Apple is now more willing to adopt IC solutions from Taiwan-based IC design houses as it is adjusting the cost structure for iPad tablets in order to compete with an array of tablet PCs to be launched by rivals in the second half of 2011.”

Expected to stick to its annual product cycle and launch the iPad 3 around May of next year, recent rumours have suggested Apple will add a Retina display to the next-gen tablet, a feature that will no doubt up the device’s price point.

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Via: DigiTimes