From some time ago Apple was working on iPad 2 Display orders in order to make iPad 2 with a nice retina display, but according to a report from DigiTimes which claims that Apple has just canceled iPad 2 display orders and preparing for iPad 3 launch early 2012…

The report says that Apple has officially canceled it’s fourth quarter iPad 2 display panels orders, as Apple has already about an extra 4-5 million iPad 2 in the third quarter so that Apple saw that it must reduce the orders and work on iPad 3 which some sources says it will be released early 2012…

Sales of iPads at the end market totaled 11.12 million units in the third quarter of 2011, according to data released by Apple. However, inventories of parts and components prepared by the makers in the supply chain for the production of iPad 2 in the quarter are sufficient for the production of 15-16 million iPads, leaving a stockpile of 4-5 million units of iPad 2 in the supply chain, the sources noted.

iPad 3 expected to be released early 2012, report says:

While Apple is adjusting panel inventory for iPad 2, Samsung and Sharp already began shipping panels for the next-generation iPads to Apple in October, and Taiwan-based touch panel makers TPK Holding and Wintek will begin to ship touch panels for the new iPads to the supply chain in November-December, the sources noted.