Rumors of an next gen iPad mini have been on the web for several weeks now, and many reports are suggesting that the new device would include a Retina Display as one of the many new features. However, according to market researchers, the inclusion of a Retina Display would bump the price of the second gen iPad mini by up to 30%. This means that each iPad mini would cost Apple $12 more per unit to produce, and would subsequently cause a price increase for consumers.
According to Digitimes, this addition of $12 per unit would raise the total price of the iPad mini above $200 for production. A Retina Display would tack on a number of new costs, including a new LED backlight for the higher pixel density. Overall, this would total up to a 30% increase in price for production. The most expensive part of an iPad mini is the screen, which is $80 per unit. A teardown by research firm IHS iSuppli in November estimated that the iPad mini internals cost Apple $188 to produce.
Although analysts are expecting a price increase for consumers, it is likely that Apple will find a way to retain the current price point as they did with the 3rd generation iPad after it received a Retina Display. It is unclear exactly when Apple plans to introduce a iPad mini with Retina Display, however, other issues such as retaining the same form factor and battery life may also present an issues alongside the price.