Reuters is citing “sources” that say Apple is gearing up for production of the second-generation iPad in the first quarter of next year. One of their sources also says that the iPad will have front- and rear-facing cameras.

From Kelvin Soh and Argin Chang’s report in Reuters:

One of those said the revamped model would feature cameras on the front and rear, while the other said the new model would be slimmer, lighter and have a better resolution display.

This report from Reuters comes just two weeks after DigiTimes published the Economic Daily News’ list of new features that include FaceTime, smaller size panels featuring thinner glass, 3-axis gyroscope, a USB port, and Retina display.

I stand by what I wrote in response to the Economic Daily News’ list. I do think that the iPad 2 will have a front-facing camera but find the rear-facing camera highly unlikely. And in regards to the Retina display:

A Retina display on the iPad would be absolutely stunning but the problem is that the only logical resolution is 2048×1536. And a 9.7-inch panel at that resolution wouldn’t have high enough manufacturing yields and would be too expensive to sell at Apple’s current price points. They could release the iPad 2 with a higher resolution than the current 1024×768 resolution but lower than the logical 2048×1536 but that would make very difficult for developers to build assets at both resolutions, simply because the math wouldn’t work out well.