Now that iOS developers are rolling out plenty of iPad optimized versions of their apps, they may soon need to create yet more variants for the next generation iPad. Reports out of Taiwan are now saying that Apple will utilize a Retina Display, but if they do, resolution will have to increase from the current 1,024 x 768 and 132 pixels per inch to somewhere well north of 2,048 x 1,536.
Other changes that might arrive in iPad 2 include a USB port, a second dock connector to allow landscape use in the keyboard dock and dual (or at least front facing) cameras for FaceTime. Jonny Ive and the crew will probably find a way to make iPad 2 slimmer and lighter than the original as well.
A newer version of the tablet sounds great (and is practically guaranteed, even if not all of these features are). But a full-sized Retina Display could be a tough thing to pull off, and would likely provide some more supply issues for Apple. On the other hand, it's always possible that Jobs could simply redefine the meaning of Retina Display, trending downward from the 300+ ppi he touted when the iPhone 4 was revealed last June. Since doing anything other than simply quadrupling the resolution the way that the iPhone did would make scaling more problematic, it seems probable that the iPad 2 display will keep the current resolution while perhaps getting other improvements like less glare and better viewing angles. As for the other features, we'll have to wait and see what shows up on stage with Steve at the next event.