According to sources with Taiwan-based Apple suppliers, AU Optronics is piloting the production of the iPad mini 2. More information on the topic tells us that the 2nd gen iPad 7.9 inch mini will come equipped with an impressive 2048×1536 pixel resolution.
If true, the second iPad mini will double the screen ppi of the original mini, giving it a beautiful 324 ppi, putting the screen quality at a higher pixel-per-inch than the fourth generation iPad, and just a touch behind the iPhone 5’s retinal 326 PPI.
Although this is by no means an official confirmation, there’s really no doubt that the second iPad mini will come with a boosted display, as the original iPad mini’s grainy resolution certainly was its weak point. The iPad mini has proven to be quite popular, so it’s likely the 2nd gen will follow in its footsteps. We aren’t sure when we’ll see the iPad mini 2, but I expect it will reach the shelves sometime in 2013, and hopefully Apple will have prepared enough stock to keep it there for a good few weeks.
I expect that the iPad mini will come equipped with some new and pretty hardware; although I think the main appeal will go towards the screen display. The new tablet may also be installed with a new, refreshing iOS design overhaul.[Source]