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Spoke to Apple Care and they are baffled by what it may be. They asked that I make a genius Appointment to have it documented in case anything else happens or becomes faulty because of it. I will look at the other iPad Mini R that are on display to compare while I'm there and will keep you guys updated. I don't care that it's there I just want to make sure it's nothing bad that may be a prototype or something shady that's tracking me and I'd just like to know what the hell it is lol.
 
Maybe the bottom half of the home button is what WOULD be a TouchID button, but with a normal top half, void of the actual sensor?
 
I can't wait to hear what the look on the face of the Genius was like, if you bring it into a store. "There's a sensor in my home button." Please record it...
 
The ring around the home button looks that way because I have the MIME glass screen protector installed. It's makes the home button a little recessed looking but has curved edges and is by far the best screen protector I've had for any ipad I've owned.

On an unrelated note, I had a question on the MIME glass. Does the protector lift up off the edges of the ipad if you squeeze above the corners of the screen area? Not lift up entirely, but enough to see that it is like a bubble. This happens on mine and once you stop squeezing, it reapplies and a few newton rings are left that can be easily pushed away, so I know the protector is sticking. Possibly, the adhesive on my protector is really weak. Never had this issue with glass screen protector on other devices...but those were phones.
 
Interesting pics OP. I wonder if Apple uses transparent plastic for the home button, with a matte black backing, and in your case, the button somehow bypassed the coating phase.
 
someone in a portuguese forum complained about having one of those "sensors" too. wondering what it is...
 
I'm not convinced its a sensor of any kind. I think it's a spot on the button with no (or less) black paint on it. Either a manufacturing defect where the button was attached to a spine or holder, or it's for the center pin of the button mechanics. It's far to small to be a fingerprint scanner and there's no mystery scanners built in to Apple hardware.

Either way, if it's visible under normal circumstances, then it's reasonable to return it and request a unit without a cosmetic defect. If it's only visible in the most unusual of lighting situations - and the unit is otherwise pristine - I personally would probably ignore it.
 
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