The iPad 2 replacement will be a 16-gigabyte, 9.7-inch Retina display iPad starting at $399, the same price as the iPad Mini with a Retina display. The larger of the two was initially launched as the fourth-generation iPad with a $499 price tag.
(Read more: Apple's tablet competitors)
"Apple knows it has to compete at the lower end of the price scale, against $200 to $300 tablets from Google and Amazon that are really great deals for consumers," Ackerman said.
Apple is also trying to get consumers to use Apple devices that have the same power cords, according to Ackerman.
"They're really trying to get everyone on to the new, smaller Lightning connector. ... The sooner you can standardize, the easier it is to sell accessories and add-ons," Ackerman said.
—By CNBC's Althea Chang.