AU Optronics Starts iPad mini 2 Production [Rumor]

Display manufacturer AU Optronics has caught up with iPad mini yields, and is working on Apple's next-generation 7.9-inch tablet, according to the DigiTimes. The original iPad mini has been in short supply since its release, but Apple has recently updated its online store listing as "in stock".

iPad mini with Retina display

Industry sources also said AOU is working on new displays for the iPad mini 2. The second generation tablet is rumored to be receiving Retina display, which could increase the price. It is estimated that the new displays will raise production costs by 30%. If true, Apple could pass the extra costs onto customers.

The iPad mini is already considered pricey for a 7-inch tablet, and adding Retina display could raise the price from $329 to around $350.

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