"The iPad Mini pricing at $249 will not hold," Bakers said. "Three times this year major U.S. retailers have advertised it at $199. Those three weeks alone accounted for almost 20% of all iPad Mini sales in 2014, both regular and Retina displays, and were, by far, the three highest-selling weeks for iPads year-to-date."
Nor would prices of the more expensive 9.7-in. iPad Air stand, Baker said. "The iPad Air -- last year's model -- will not hold its price at $399 either; large tablets are even more competitive today than small ones," he wrote.
Those pressures, Baker said, were one reason why Apple extended the iPad line's price bands by retaining the two-year old original iPad Mini. For all its premium positioning, Apple isn't immune to the troubles facing tablet makers in the U.S.
"Aggressive pricing at the entry-level is a must for Apple," Baker said.
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