Starting at $329 the iPad mini already costs more than most 7-inch tablets on the market, and adding a high resolution Retina display could make it even more pricier. According to iSuppli (via the DigiTimes), bumping the iPad mini's resolution from 1024x768 to 2,048x1536 would raise production costs by 30%. If true, these extra costs would either have to be eaten by Apple, or be passed onto consumers. Apple isn't known for increasing prices from on from one generation to the next, but it is hard to see how they can keep the iPad mini priced at $329 if all the rumored hardware upgrades are true.
A lot of people were displeased with the iPad mini's lack of Retina display, but a lot of people were also shocked by the $329 price tag. So will people be willing to pay more money for more resolution? I guess it depends on why someone wants a smaller tablet in the first place.
Two of the more popular 7-inch tablets on the market are the Google Nexus 7 and Kindle Fire HD. Both feature 1,280x800 high definition LCD displays and cost less than $300. The Nexus 7 and Kindle Fire are a popular alternative to larger tablets because they offer the ability to read, watch movies and surf the web while on the go, for less money. If price and size is what makes 7-inch tablets more attractive than costly 9-inch tablets, maybe raising the price of the iPad mini to almost $350 is a bad idea.
However, there is always the Apple Factor to consider. Apple has proven people don't mind paying extra for quality products. So a small bump in price may not be such a big deal, especially when it comes to dedicate Apple fans.
Would you be willing to pay more for an iPad mini with Retina display?