Personally, I'm skeptical that Apple will drop the price much, if at all. It's not as if they've encountered strong price resistance for the iPad. And while they may well have renewed price pressure from devices like the Amazon Fire, I suspect the attitude at Apple is that they can sell the greater functionality of the iPad at their current price points.
Furthermore, short of significantly diminishing the build quality of the iPad, I'm not sure there is a lot of what manufacturers often term "value engineering" to be done with the device. Apple is clearly not interested in selling iPads at a break even price point. And the prices of other devices and the components that go into an iPad suggest there is not a lot of substitution of lower cost components that would yield a great savings to Apple's customers without making a "cheap" tablet.
An Amazon Fire can sell for $200 because it lacks a camera, 3G connectivity, has a smaller screen, doesn't purport to provide content creation features, and because Amazon can expect to make a profit simply by linking many more customers to Amazon. Apple could radically diminish the iPad's capabilities and would still be more expensive than an Amazon Fire. I don't think that selling a commodity tablet is an Apple strategy.