Mar 4, 2011 09:15 GMT  ·  By

Apple is refunding buyers of an iPad 1 who ordered or picked one up in store in the past two weeks, not knowing that the company was to introduce a second-generation device bearing an identical price tag.

Although it was pretty much a no brainer, Apple confirmed iPad 2 rumors on March 2nd (Wednesday), at the Yerba Buena Center for the Arts’ Novell Theater in San Francisco, California.

The device packs twice the functionality and performance of its predecessor, but retains the same entry-level price for the 16GB WiFi version ($499), 3as well as the prices for the rest of the configurations, which include 3G-capable models, and more storage options.

Unwary customers eager to buy themselves an iPad in the past two weeks, are now reporting that Apple is offering $100 refunds on their purchase.

Some may think they’re entitled to a full refund, or a switch with the new-generation device. However, Apple is already struggling to get rid of all the old-generation tablets through its Special Deals distribution channels - clearance and refurbs.

As reported yesterday, Apple has dropped the price on the original iPad to $399 for the base WiFi model with 16GB of flash storage. The more expensive models are similarly priced at $100 less to match the aforementioned refund.

Those who haven’t yet bought an iPad may also get a discount the Mac maker’s ‘Refurbished iPad’ section of the Special Deals area on store.apple.com.

There, pre-owned, first-generation tablets go for as little as $349, which is $50 off the newly discounted price, and $150 off the original retail price still in place a few days ago.

Needless to point out, the deals on original iPads are hot. The systems ship with one-year warranty and 90 days of telephone support.