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There is no question that iPad 3, coming early next year, will have a higher resolution display than actual 1024x768 ones. iPad 3 to have Retina Display has been in the air since iPhone has had it. However, it is not so simple, because the current LED light bar in iPad 2 must be modified to reach the appropriate brightness in addition to the increased resoluton in iPad 3, as well.
There are several opportunities to do this: one of them is that Apple could order a dual LED bar from manufacturers, however, there are some issues with this solution, because LED bulbs have too much heat dissipation, and also it can increase battery consumption. According to the rumors manufacturers are trying to overcome these issues.
Other essential components of iPad 3 allegedly have been in the factories in the Far East since late October, so that 2 million pcs of new tablets can be produced till late December, and so that they can have enough supplies for the start in March 2012.
Initial sales may be quite large, even if just part of rumors proves to be true. Based on these rumors iPad 3 can have a 2048x1536 resolution display (two times as high as the current one), a quad-core processor called A6, and a thinner Dock Connector, which can make next generation gadgets much thinner than they are now.