AT&T is having a fire sale on first-generation iPads. When the iPad 2 went on sale one week ago -- Apple and AT&T cut prices on 1st-gen iPad by $100. After the discount: $529, $629 and $729 for the 16GB, 32GB and 64GB models, respectively, with 3G and WiFi.
AT&T has now knocked another $100 off the price, dropping 3G and WiFi model pricing to $429 and $529. The $529 32GB iPad is already sold out. So AT&T knocked another 100 bucks off the 64GB 3G model. That's right $300 off the original selling price.
By comparison, Apple is holding steadfast to previous discounts. Its prices remain the aforementioned $529, $629 and $729 for the 3G iPad's.
Typically, retailers only deeply discount when they've heaps of leftover stock. A new model tends to discourage sales of an older one. However, iPad 2's limited availability could actually spur demand for the 1st-gen product.
AT&T doesn't require a data contract, so there're no required monthly service fees.