We may not see an iPad Mini 2 release date this year after all, at least not the Retina version that many Apple fans have been dreaming about, a new report said.

It appears that Apple is encountering production issues in including the popular display technology with the second-generation iPad Mini, Apple Insider said in a report, citing KGI Securities analyst Minh-chi Kuo as a source.

The core problem is the apparent compromise in screen quality, Mr Kuo said, explaining that Apple engineers were finding it hard to extend the same Retina tablet quality that was originally experienced through the 9.7-inch iPad.

The KGI analyst, Apple Insider said, pointed to "apparent production issues associated with cramming enough pixels into the device's 7.9-inch display to qualify it as a Retina calibre of screen."

This challenge is yet to be resolved and the likelihood is Apple would have to postpone the iPad Mini 2 with Retina rollout set later this year and move it probably on early 2014.

In its stead, the tech giant will release a scaled-down iPad Mini 2 version, Mr Kuo said, if only to keep Apple in active competition with Android tablets slated for unveiling in Q4 2013, chief among them the Galaxy Tab 3 Plus lineup from Samsung and the more powerful second-gen Nexus 7 from Google.

This particular iPad Mini will differ from the first edition in terms of specs and pricing, Mr Kuo said.

Buyers will have to make do with less features via the iPad Mini's second coming such as an upgraded A5 chip, storage of only 8GB and only a front camera for FaceTime sessions, the report said.

The good news is, this Mini 2 will be in the affordable range, likely to be priced between $US199 and $US249, Mr Kuo said.

In spite of Retina's absence in the iPad Mini 2 release date this year, Mr Kuo insisted that "Apple will stay competitive in the tablet market over the long term as it releases new and exciting products."