One Apple rumor that is almost certain to be proven correct this year is the launch of a Retina display iPad mini. However, with better technology comes increased costs, according to DigiTimes.

Were Apple to launch the second-generation iPad mini with a Retina display, it would cost the company $12 more to product. This would push the price Apple pays per unit to $200.

According to iSuppli, the price of the 7.9-inch panel is around US$32/unit and the total material cost of entry-level iPad mini is around US$188/unit. If iPad mini adopts the Retina display, the dots per inch (DPI) will be higher and the brightness of the backlight modules will have to improve. This also means the number of LEDs used will increase, and therefore market observers believe the total cost for iPad mini will increase by more than 30% if it is equipped with the 7.9-inch Retina panel.

The first iPad mini launched in October. It currently retails for $329 for the entry-level 16GB unit. The second-generation iPad mini could launch as early as next month.

See also: Retina Display For iPad mini 2 Set For Production, Pixel Density Greater Than iPad 4, and Apple Rumored To Be Testing Foxconn Subsidiary’s Touch Panels For Next iPad mini.