Every one of Apple's current products has a clear purpose. What purpose does iPad mini serve?
- Mac mini - $499 gateway to Mac
- iPod touch - $199 gateway to iOS
- iPhone SE - $349 gateway to smartphone
- iPad - $329 gateway to a "computer"
Apple's current strategy is to position the iPad Pro and iPad + Pencil as a computer, so customers see more value in iPad. As a non-computer, the iPad mini is dragging down the iPad name. Would it make sense for Apple to devalue the iPad family and introduce a $249 mini without Pencil? I would say no.
iPhone SE for example, targets the 200 million customers in India and Africa who bought feature (dumb) phones last year. The iPad mini is in a weird place where it isn't a computer and serves a small population. It's too small to be a computer and the 9.7-inch iPad is already a gateway price.