Apple's new iPad mini has only been in stores for a week and we already have an intriguing rumor of something big on the horizon for the 8-inch tablet.  Retina display looks to be coming to the iPad mini.

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Whispers of Retina display coming to the iPad mini surfaced from an Asia supply chain. AU Optronics a maker of iPad mini displays is working on a 2,048x1,536 pixel resolution display for the next iPad mini, reported Chinese-language DoNews in a story Nov. 7.

If accurate, that would mean the iPad mini's screen would have the same resolution of the 9.7-inch Retina display on the third- and fourth-generation iPads. And would translate to a 300-plus pixel density (versus the iPad 4's 264 pixels per inch) because you're packing the same number of pixels into a 7.9-inch display.

While we're usually cautious of putting to much stock in any rumor, Apple's ambitions to put Retina display in the iPad mini would certainly make sense. The biggest complaint early reviews have had with Apple's new, smaller iPad, is the device's screen, which many say pales in comparison to Google's Nexus 7 tablet, and Amazon's Kindle Fire HD.

"The IPS screen measures 7.9 inches diagonally, and is 1024 x 768 in resolution. For those keeping count, it's the same resolution as the original iPad. That makes for a pixel density of 163 ppi, which as you might guess doesn't seem too terrific next to devices like the Nexus 7 or Kindle Fire HD (each 216 ppi), Nook Color HD (243 ppi), or the big daddy 4th generation iPad (264 ppi). It's also much lower in pixel density than pretty much any smartphone on the market right now," said The Verge in its review.

The success of Apple's iPad has defined the tablet market since the first generation of the device was released in 2010. Apple's share of the market shrunk by 20 percent since then to 60 percent due to the introduction of 7-inch Android tablets. If the iPad mini really is updated with retina display perhaps it could win back some of those gains made by Android devices.

According to Slash Gear, attempts to bring retina display to the iPad mini have been stymied by technological feasibility. Although, MENAFN reports that AUO's breakthrough has been in adopting IGZO (indium gallium zinc oxide) "a Sharp technology we've seen used to prolong battery life without sacrificing brightness on the KDDI AQUOS Pad SHT21, albeit at a mere 1280 x 800 resolution," says Slash Gear.

The website continues, "AUO will also use Gate IC on array (GOA), it's claimed, which will enable a thinner frame around the outside of the display. Meanwhile, the company says it has also addressed the yield issues around the current iPad mini display, cutting out the light leakage problem that has constrained supplies."

The second-genration iPad mini isn't expected to ship until Q4 2013, according to insiders, says Slash Gear.

Apple has not commented on the matter.

"I don't think the lower resolution is a deal-breaker in this product, but it is a compromise you have to be aware of," said The Verge. "It simply doesn't look as clear as other products on the market."

"Would I prefer a higher-res display? Certainly. Would I trade it for the app selection or hardware design? For the consistency and smoothness of its software, or reliability of its battery? Absolutely not. And as someone who's been living with (and loving) Google's Nexus 7 tablet for a few months, I don't say that lightly."

iPad Mini Specs

You can get an iPad Mini Wi-Fi model in three memory configurations: $329 for 16GB, $429 for 32GB, and $529 for 64GB. On Nov. 16, we'll see Wi-Fi + 4G models hit the shelves at $459 for 16GB, $559 for 32GB, and $659 for 64GB.

The 1,024x768-pixel resolution matches that of the iPad 2, but on a 7.9-inch display. "This definitely isn't Retina Display, but it's better-than-iPad-2 display. Videos look excellent, and the IPS screen has great wide-viewing angles," said CNET.

Includes a front-facing 720p-capable FaceTime camera, and a 5-megapixel back camera, and also supports 4G LTE, 802.11a/b/g/n Wi-Fi at 5.2Ghz, Bluetooth 4.0, and will use Apple's Lightning connector, first seen on the iPhone 5.

Apple claims that the Mini has a 10-hour battery life.