According to The Daily, the next generation, Retina Display equipped iPad 3 may be released alongside the iPhone 5 but may add the option to purchase it with a 2 year contract subsidy with carriers like AT&T.

The report is claiming that it may hit as low as the $199 price point in an attempt to shut out competitor’s tablets like the HP Touchpad, Blackberry PlayBook and Android tablets.

Of course, this is skeptical seeing as the tablet pay-as-you-go plan for the iPad is relatively cheap and easy to use. The iPad is also priced very competitively seeing as how most competitors are having trouble creating a product that is attractive enough to persuade consumers over to their platform. For example, Motorola recently said that their flagship Android tablet, the Xoom, might sell only 1.5 million units for the whole year, the BlackBerry PlayBook has only shipped 500,000 units and the HP TouchPad has already dropped 20% off its retail price after its first month of availability.

(via The Daily)