A recent report from Digitimes relays that Apple’s next iteration of the iPad Mini may sport a screen resolution of 2,048×1536, giving it a Retina Display but also increasing the cost production by approximately $12 per unit. As it stands now, the base model $329 iPad Mini has a bill of materials of $188, a figure which may soon rise to $200 if the Digitimes report proves accurate.
The report further suggests that with the extra costs associated with putting a Retina Display into the iPad mini, including increased backlighting and LEDs, the total cost of the Retina Display iPad mini could increase by around 30%. Interestingly, the mention of LEDs in this report is strange in the context of recent statements by Tim Cook, CEO of Apple who suggested that OLED displays were inferior in color saturation compared to the Retina Displays.
Either way, don’t expect Apple to adjust the price of the iPad Mini upwards of downwards. Margins on the device are already lower than what Apple already enjoys across the entirety of its product line and it’s hard to imagine Apple would tolerate even lower margins.