The A6 processor would be a logical upgrade for the iPad mini, advancing its main processing chip to the next generation.
Exactly. Apple could be working toward this lineup in the fall:
iPhone 5S - $399 (64GB, A7, black/slate or white/aluminum)
iPhone 5S - $299 (32GB, A7, black/slate or white/aluminum)
iPhone 5S - $199 (16GB, A7, black/slate or white/aluminum)
iPhone 5C - $99 (16GB, A6, multiple color choices)
iPhone 5C - $0 (8GB, A6, black only)
iPad (5th gen) - starting at $499, A7X
iPad mini (2nd gen) - starting at $299, A6
Notes:
- The iPhone 5C internals would mostly be comprised of the previous year's high-end iPhone internals, minus key differentiators (fingerprint-sensing home button, improved camera, dual LED flash, etc.) The low-end "C" model would never get the fingerprint-sensor home button.
- The iPad mini would stay non-Retina until Retina screens are cost-effective. In other words, until Apple can equip the iPad mini with a Retina screen and still make a price point around $300 with a decent margin. But only if the Retina screen can also be efficient enough to allow for 1. a body shell as thin as or thinner than the 1st gen iPad mini (e.g. same-sized or smaller batteries), and 2. battery life as good as or better than the 1st gen iPad mini.
- iPad mini pricing could drop to $299. Should be easy to reduce next-gen iPad mini costs enough to maintain current margin at that price. And dropping below $300 might attract more buyers. Downside: will be hard to build the eventual Retina model and sell it profitably for $299.
- iPad mini wouldn't need the X variant of the ARM-based chip because it is non-Retina. This year: iPad mini (2nd gen) with A6. Next year: iPad mini (3rd gen) with A7. Or, if Apple advances their display technology enough, next year's iPad mini (3rd gen) could get a Retina screen plus A7X chip like the "big" iPad.
- Next year, Apple could drop iPhone numbering entirely, as with the iPad lines. From 2014 on, the iPhones could simply be called "iPhone" and "iPhone C."
- Apple would never need to manufacture any iPhone model for more than one year. Although the previous year's high-end iPhone components would (mostly) migrate to the "C" model, each year's high-end and low-end iPhone models would always be "the new iPhone" and "the new iPhone C."
- Pricing in US Dollars, and iPhone pricing includes cell carrier subsidies.