Here’s more from the note:
Strong demand for low-price 9.7-inch iPad in 2017. iPad shipments hit 43.8mn units in 2017, well above the 35mn units forecast by the market at the beginning of the year. The primary driver was the low-price 9.7-inch model, whose selling points are competitive pricing and a significantly larger panel than those of six- to seven-inch smartphones (iPad mini was a flop because it was replaced by large-screen smartphones). In a bid to strengthen its selling points and to differentiate it more from low-price Android tablets, the new low-price 9.7-inch iPad (starting mass production in 2Q18) will likely support Apple Pencil.
Kuo said that if the 9.7-inch iPad does support the Apple Pencil, shipments could possibly double in 2018.
While there have been no concrete rumors regarding Apple Pencil support for a new lower-cost iPad, Apple’s invitation for a special media event on Tuesday, March 27 sparked renewed speculation. As you can see, the invitation apparently looks drawn with the Apple Pencil.
Earlier today, a separate report from Bloomberg said that Apple will indeed unveil the iPad and new education-related software at the event.