As you said, it's about profit margins. A new 9.7" Pro is going to cost almost as much to build as 11" and I doubt Apple's willing to lower their markup/margins.Why?
It is all about profit margin, not about real costs. Could go for $100-149 cheaper than the 11 inch iPad Pro, since the 12.9 inch is $200 more than the 11 inch.
Before the iPad Air 3's release, the already 1+ year old 2017 iPad Pro 10.5 was occupying the $650 price point. The $500 Air 3 is even a feature-gimped version of that.
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