KGI-Securities Analyst Ming-Chi Kuo has gone on record predicting Apple has plans to release the iPad 5 and the iPad mini 2 with an A7X processor in time for the upcoming holiday season. Since the A7X will be a significant upgrade from the current A5 processor found in the iPad mini, Kuo believes this indicates the second-generation mini will use a Retina display like its larger counterpart.
Retina displays decrease the amount of pixelation the human eye detects at a normal viewing range while increasing resolution. The analyst’s prediction of the A7X chip in both devices is based on the fact that only an A-Series-X chip is powerful enough to run a Retina display, eliminating an upgrade to an A6. However, some pundits believe this doesn't rule out the possibility of an A6X powered mini.