Apple's intention for the iPad3 could be to literally outshine its predecessor with a brighter, more detailed Retina Display that doubles the pixel density of the iPad 2. Sources say the iPad 3's display will be somewhere in the ballpark of 2048 x 1536 pixels.

More pixels in the Retina Display mean higher resolution for watching movies and viewing detailed images, from PDFs to X-rays to MRIs to 3D architectural renderings. Everything, all the way down to the text, will appear rich, vibrant and razor-sharp.

The larger resolution should provide the company's app developers more convenience, while all future applications will be able to run under any of Apple's machines including the 27-inch iMac, the report said.

Apple's Taiwanese supply chain says the company is reportedly dissatisfied with the single LED backlight bar designed for the iPad 2's 1024 x 768 resolution display, so several vendors have pitched alternative solutions to the Cupertino, Calif.-based company, including a design that looks just like the singular LED bar but features two LED chips inside.

Apple, however, is reportedly leaning towards another option, which uses dual-LED light bars inside the iPad 3, one on the left and one on the right. The supply chain says Apple is very interested in this option, now that the manufacturers of LED back-light units have reportedly solved several puzzles involving heat dissipation and battery consumption. These LED issues had reportedly affected the launch schedule of the iPad 3.

Apple has been receiving tablet components at its overseas facilities since the end of October, and Apple still reportedly plans on pre-constructing about two million new iPad 3's by the end of December. Various sources have pegged Apple's iPad 3 release date to be around March 2012.

Apple's next iPad will also reportedly feature a faster quad-core A6 processor based on nanometer processing technology, as well as a smaller, redesigned dock connector so the tablet manufacturers can cut down on the device's overall thickness. The iPad 3 will also reportedly feature a battery pack that is thinner, lighter and lasts longer than the battery of the iPad 2.

The overall design of the iPad 3 is still widely unknown. As of last week, sources from within Apple's supply chain say the company had yet to sign off on a final design, but Apple has reportedly developed two next-generation designs, codenamed J1 and J2, which each feature slightly different specifications, sizes and technologies. One report has called the J2 model a more ambitious upgrade from the iPad 2 compared to the J1, but Apple is likely to make the final decision on which design to mass produce by early next year.

Apple sold 32.1 million iPads in the fiscal year ended September 24.

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