"The improvement of iPad 2 display," the report notes, "focuses on thickness and anti-reflection, not resolution. iPad 2 display module is 30~35% thinner than iPad 1 and it's helpful for better form factor.
Thanks to anti-reflection, iPad 2 could have better sunlight readable experience and it's helpful for Apple to compete with Amazon's fast growing Kindle business.
The most important reason why iPad 2 won't have retinal display is yield rate of panel making. At this point, making high resolution and bright IPS/FFS panel is not easy and the production volume and cost couldn't meet Apple's requirements."
The report also notes that the iPad will get a dual core processor and SGX543 graphics.
"iPad 2 will use [ARM] Cortex-A9 dual core processor running at 1.2GHz. Increasing 1~2% single core processor clock results in a 3~5% power increase and dual core could get a better balance between computing power and power consumption. That's the reason why Apple will use dual core for iPad 2."
"iPad 2 will also have a GPU using Imagination's SGX543 dual core graphics technology which is 200~300% powerful than iPhone 4."
Finally the report confirms that the iPad 2 will get two cameras and suggests a SD Card slot may be possible.
"iPad has two cameras. Front camera is 0.3 mega-pixel [VGA, like iPhone 4] and rear one is 1 mega-pixel [like iPod touch, rather than iPhone 4]. Front camera is for Facetime and Photo Booth and 0.3 mega-pixel is enough because the resolution of iPad 2 is 1,024x768. Rear camera is for applications such as video recording and augmented reality."
The iPad 2 is said to be heading to market in late 1Q'11 or early 2Q'11 based on supply chain shipment status.