Apple already knows it has a huge hit on its hands with the iPad mini even though it lacks a Retina Display. Adding a Retina Display will erase the iPad mini's main criticism. Is this the reason Apple is expanding iPad mini production by 40% in 2013?

According to Patently Apple, Apple is expanding production of the iPad mini by 40% in 2013 through Pegatron. Pegatron currently has three plants manufacturing the iPhone and iPad mini. Brightwire, a business-to-business resource for portfolio managers believes, “this is an excellent sign that Apple is expecting their next iteration of the iPad mini with Retina Display to be a hot seller.”

This is more confirmation that the iPad mini is cannibalizing sales of the 9.7” iPad. One of the biggest criticisms Apple has faced with the iPad mini is its lack of a Retina Display. Apple has already increased iPad mini orders by 2 million for the Christmas quarter. So it sounds like a 40% increase would make more sense for the second-generation iPad mini with a Retina Display.

Many technology insiders believe Apple entered the smaller-sized tablet market with the iPad mini to see if it could successfully stomp out the competition like it has done with the 9.7” iPad. It certainly looks like Apple has accomplished (or is well on its way to accomplishing) what it had set out to do.

Apple clearly knows adding a Retina Display to the iPad mini would resolve the main criticism it has faced with the tablet, and with that criticism out of the way, a 40% increase seems to be the number Apple believes will be enough to meet demand when it releases the second-generation iPad mini with a Retina Display.