"Tepid" sales and the long rumored iWatch could push the iPad mini 3 and Apple's 12-inch "iPad Pro" to the back burner in 2014. KGI Securities’ analyst Ming-Chi Kuo predicts Apple will only concentrate and launch a second-generation iPad Air this year. Kuo says the new tablet will most likely feature Apple's updated A8 processor, Touch ID and a few minor improvements. The rumored 12.9-inch iPad will also be released in limited supply in 2015, according to Kuo's note obtained by Mac Rumors.
"Compared with lower-margin iPad mini with Retina display, which shipments has been tepid, higher-margin iPad Air was a hot selling item in 4Q13, which will slow Apple in developing new iPad mini models. We believe Apple plans to launch upgraded iPad Air early this year, and will accelerate development of 12.9” iPad. As such, more resources will be allocated to these two products, which will affect the progress of the development of new iPad mini. All told, we think chances of the debut of a new iPad mini in 2H14 are slim. In addition, the 12.9” iPad is unlikely to be offered in 2014. For these reasons, we predict the only new iPad product in 2H14 will be the upgraded iPad Air."
The Wall Street Journal earlier this year reported that Apple will also discontinue the iPhone 5c and will instead launch two new iPhones with larger displays in its place. This adds some credence to reports that both the iPad mini with Retina display and iPhone 5c did not sell as well as Apple had originally hoped.
Another recent a report published by AppleInsider claims Apple will discontinue the iPad 2 because iPad mini units are outselling the older iPad model. This could mean the iPad mini 2 will just replace the second-generation iPad as Apple's "low-cost" offering to the second-generation iPad Air. The 16GB Wi-Fi-only iPad 2 and 16GB Retina iPad mini are both currently priced at $399.