I experience the lag even with a new document in Pages, and it gets worse as I use Pages or increase the file size. I'm happy to report that the problem is not with the iPad, at least not my iPad 3, although I have experienced for years the lag between clicking the keys and the characters appearing on my iPad screen in the Pages iOS app (currently ver 2.6.1 on iOS 9.3.1) (and with iOS 7 and 8 and prior versions of the Pages app), like everyone else who has reported the frustrating, incredibly bad lag. No amount of memory clearing and reboots solve the problem for more than a few minutes, if at all. The solution? Don't use the Pages app. The Pages app is faulty. When I use the MS Word iOS app, ver 1.2, my keystrokes appear instantly on the iPad 3 screen, without any delay. After using Pages, using Word is like witnessing magic. All the frustrations fade away. The problem isn't the hardware or even iOS 7, 8 or 9. It's not your keyboard or the Bluetooth connection. It's the Pages app. Spread the word. Hundreds of thousands of people will thank you, and maybe Apple will fix their Pages app. I don't have a dog in the hunt between MS, Apple, or any other tech company. Other word processing apps may work just as well as MS Word on an iPad 3 with iOS 9. I'm just telling you how to solve your key lag problem without spending a dime. Word. (all puns intended)
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