It looks like they have a smart cover compatible shell in the works. According to their site they are making color matching shells in both genuine leather and polyurethane. I imagine this means that if you have a leather smart cover color then you have to pick the leather shell, and the same for the polyurethane. http://store.happyowlstudio.com/pages/sneak-peak If done right for the right price, this could be a nice option for smart cover fans. One caveat to be aware of, Happy Owl isn't known for their punctuality, so no telling when these will be available. The blog states they are in the prototype stage, but claim they learned a lot last year and should be delivering sooner than they did with the iPad 1.... We'll see.