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Maybe. But if they do, I would expect the improvements to be minimal. Apple has only just caught up with production demand and there isn't much lacking on the current iPad2 in the CPU/GPU/RAM areas. I can't see Apple being ready for an RD display launch at the required scale for a $500 price point until next year.
That said It may make sense to offer a smaller upgrade now just to get the release cycle in line for Fall. This would bring the iPad more in sync with iOS releases, instead of the current situation of launching with a 9 month old OS.
 

Of course ipad 2 will be discounted if iPad 3 is the true replacement.

However, read the article again.

It's absolutely stupid for Apple to release a new product for the holiday season when ipad 2 is still selling well and will continue to sell well.

Add, the article is stupid and says "holiday OR NEXT year year"

Duh, early next year could mean Q1 2012...that could lead us until March 2012.

If there and 'ipad 2.5" this year, it will be a 7 inch screen one and with very little spec improvement.
 
If there and 'ipad 2.5" this year, it will be a 7 inch screen one and with very little spec improvement.

While I agree that anything this year would have very little spec improvement, iOS5 may have some surprises that could justify new hardware revisions across the iDevice line. In any case I doubt there will be a change big enough to make users regret buying an iPad2.
 
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