Apple hasn't yet revealed UK pricing for the iPad 2, however, an Apple Store employee has revealed to a Macworld reader that the new entry-level iPad 4.2 will cost £429 - £10 cheaper than previously. 

The Apple customer, who purchased an iPad last week, was able to have his money refunded to an Apple gift card in order to buy the iPad 2 when it arrives in the UK on 25 March. When refunding the money in the form of an Apple gift card, an Apple Store employee revealed that there would be £10 left on the gift card after buying the iPad 2, due to it costing £429, £10 cheaper than the original iPad had been.

The Apple customer purchased his 16GB WiFi iPad for £439 last week, before discovering that the iPad 2 was about to be announced. Understandably, his frustration heightened when Apple reduced the price of his iPad model to £329, £110 less than he had paid just a few days previously.

Still within his 14 day return period, the source returned to the Apple Store to enquire about a refund for his iPad. He had opened the product, and had been using it for a week, before making the decision to return it.

The receipt claimed that he would not be eligible for a refund, but would be entitled to an exchange for the same product. However, the Apple employee our source talked to, offered him a full refund, or for the credit to be refunded to an Apple gift card. Before making his decision, the source was informed that whether he chose the gift card or the full refund, he would have £10 left over after purchasing the new iPad 2 when it arrives in the UK on 25 March, due to the iPad 2 costing £429, as opposed to the £439 the customer paid for the original iPad.

The source informed us that the Apple employee claimed the returns policy is usually quite relaxed, and that customers have returned their iPads because they thought the screen was too shiny, or simply because they didn't want it anymore. The source also told us another member of the Apple Store staff claimed that they sometimes allow people that purchased their products up to four weeks ago, to have a full refund or exchange.

When the new iPad was announced on Wednesday, the Apple Support discussion forums were flooded with disappointed customers who have recently purchased their iPads, complaining that they were not informed that the new iPad was due to arrive within a month. Apple, however, does not inform it's employees of the release date, or any other details about new products soon to hit the market.

The angry customers believed that Apple would not offer them any kind of exchange for the new iPad, however, our source has proven that this is not always the case.

Read the Apple Support discussions here, here and here