The latest discovery in the iOS 12.1 beta is that the software appears to support 4K external displays — something impossible on any current iOS device, even when using Apple's HDMI adapter.
This may support the idea that upcoming iPad Pros will offer USB-C, developer Steve Troughton-Smith suggested on Twitter. A virtualized 4K option appears when running Apple's iOS Simulator, used to test out iPhone and iPad apps.
Apple is widely expected to introduce new iPad Pros this fall, possibly in October. Specifically the company should deliver updated 10.5- and 12.9-inch models with faster processors, edge-to-edge LCDs, and Face ID. This is supported by other code strings in iOS 12.1, including one for Face ID in landscape mode, and another labelled "iPad2018Fall."
Less certain though is whether the tablets might support USB-C, whether replacing or in addition to Lightning. The former may be unlikely, since it would be inconsistent with Apple's latest iPhones while simultaneously demanding a new collection of accessories.
At the same time it would help distinguish the tablets as true "pro" hardware, thanks not just to 4K but USB-C's faster 10-gigabit transfer rate, and support for power up to 100 watts.
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I really think that the differentiation between the iPad and iPad Pro will be that the latter uses USB-C and Apple may also start to head into the docking station direction for that. You could then connect various USB peripherals, 4K display, networking, etc, I think the real question then becomes if Apple will support a mouse interface for iOS. I don’t see why they couldn’t and just treat it as a virtual touch. Of course the other “killer feature” is that the external screen would have to not just mirror the display, but allow a second window. Based on changes I’ve seen in that area, I think it’s only a matter of time.
I think an iPad with no bezzel like the iPhone X would enable it to be truely used in any orientation and therefore could feasably have a lightning port on one side an a USB C on the other. That way you can still use all current accessories and use any new stuff just as well, plus you could use both at the same time, greatly increasing its capabilities and making it a proper Pro tablet.
USB Type-C is a port/connector specification, it is not a data bus protocol. USB 3.1 supports as described above. Apple could update Lightning to support much faster data rates and in theory also support USB 3.1 (or 3.2) via a Lightning-to-USB-C dongle.
One of the main points of Lightning was to be able to dynamically adapt without the need of changing the connector/port. This was the "future-proof" design talked about when it was released.
I can see Apple continuing to use the Lightning connector and simply allowing 3rd parties to design docks, dongles and adapters with different ports... USB-A, USB-C, HDMI, Ethernet, SD Card, 3.5mm Stereo, etc.
I currently charge my iPad Pro 10.5 inch with a Lightning to USB-C cable (to a MacBook adapter). I see no reason a similar updated USB 3.1 cable working similarly could not be provided. Accordingly, the port itself will likely remain Lightning. A dongle that allows connecting a monitor and charging will likely also be available.
There was a “leaked” case design out a little while back that had a hole in the back (just “above” the Lightning port on the back of the case) that would have been the right size for a USB-C port ... it was widely misinterpreted as a Smart Connector hole, but it couldn’t be that (smart connectors are flush with the body). https://appleinsider.com/articles/18/08/24/ipad-pro-cover-leak-shows-opening-for-rumored-new-smart-connector-location