The company is only now beginning to make the high-resolution screens for the device which could be released with limited stock.
"Retina" is a term coined by Apple to indicate when a device has a high enough pixel density that the human eye cannot notice the pixelation from a typical viewing distance.
Sources told Reuters they expected Apple will either wait until early next year for a full-fledged launch of a retina display iPad Mini, or make a retina version only available in limited quantities before the end of the year.
Apple has faced growing competition in the tablet market as rivals look to muscle in on the space with new launches. The company shipped a lower-than-expected 14.6 million tablets in the second quarter last year, down from 19.5 million in the first.
Details of the new version of iPad Mini could be unveiled this month and some believe Apple may lower the price of the handset in order to boost sales in emerging markets.
"Right now the iPad Mini is more expensive than everyone else in the 7- to 8-inch tablet segment," said Arthur Liao, an analyst for Fubon Securities in Taipei.
"If it could reduce its price by even just $50, it would appeal to more consumers."
Apple did not comment on the report.