They'll replace it every year Ashworth - luxury products like this with an extremely high 'must have' factor are a gold mine for the likes of Apple. These things probably cost them £xx, and so far they've sold roughly 7-10 million iPads, which means production costs have been more than recouped. From here on in, it's just a case of adding a few more features every year like they have with the iPhone, then just watch the cash roll in. That may seem a little hypocritical of me as I have an iPhone and iPad, but my phone is a 3GS which I'm in no rush to change, and likewise with e iPad - IF the 3rd generation iPad is a good step forward, then I MIGHT think about changing it, but for what I use it for, it's not necessary.