I'll say this though, if they do nothing else for the Mini line, they should at least lower the price of the Mini 4. I know that it has a larger capacity (128 GB vs 32GB) but having it cost more than 9.7" ipad that just came out can't be helping Mini sales. What's the logic in that?
It makes sense because Apple doesn't expect consumers to purchase the iPad mini for $399. Most consumers don't want iPad mini. It's pretty clear Apple expects most buyers to opt for the iPad (2017) at $329. The iPad mini is meant for educators, commercial users, and retail operators who have a special reason to use iPad mini. They have larger budgets and Apple can price it higher.
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Not really - he didn't give any prediction on the iPad mini, not the same as predicting no iPad refresh.
Yes, Ming-Chi Kuo gave a prediction on iPad mini, most people simply didn't read close enough.
When he made his prediction in January about the 10.5" iPad, he made a forecast for 2017:
Worst has passed for Apple’s iPad. This is due to: (1) the YoY shipment decline will narrow in 2017F versus 2016; (2) a better ASP thanks to improved product mix on decreasing exposure to iPad mini will likely offset the shipment decline; and (3) an improved cost structure due to an increasing number of suppliers of touch-module lamination and DDI.
Apple doesn't experience "decreasing exposure to iPad mini" if there's any kind of mini refresh or new mini expected.