The latest report from Taiwan now concentrates on iPad 2 components, and according to this report Apple’s iPad 2 will feature a high-quality display, but still using the resolution of the original iPad. “The improvement of iPad 2 display focuses on thickness and anti-reflection, not resolution. The iPad 2 display unit is 30-35% thinner than iPad 1 and it is helpful for better form factor”, the report states. The new, improved display will bring better ability to read in sunlight which means the competition between Apple’s iPad and Amazon’s Kindle will start to warm up again.

The report goes on:

The most important reason that iPad 2 will not 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 could not meet Apple’s requirements.

The iPad 2 will use ARM Cortex-A9 dual core processor running at 1.2Ghz. Increasing 1-2% single processor clock results in a 3-5% power increase and dual core could get a better balance between computing power and power consumption. For making full use of GPU upgrading advantage, iPad will have 512 RAM, same as iPhone 4 and twice as much as iPad 1, but running at higher clock 1,066 Mhz for getting bigger memory bandwidth.

With the second-generation iPad still in production, there are rumors about an SD card slot, but this is not yet confirmed. However, the inclusion of two cameras is now certain, so for ‘Facetime’ the iPad 2 users will now have a 0.3 megapixel front camera, and a rear one with 1 megapixel.

The same report notes that ‘Foxconn’ is the iPad’s sole maker, with its production reaching to at least 4.5 to 5 million units for Apple in the first quarter of 2011.