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iPad 1 (left) vs iPad 2 Apple's iPad 3 may come in two different flavors when it's launched later this year. We already heard something of this when DigiTimes speculated on a 7.85 inch iPad. But now, the Taiwan based publication is reporting otherwise. Sources in the supply chain now tell DigiTimes that while Apple is still expected to launch two versions of iPad 3, they'll both be of 9.7 inch. Both the devices are said to sport a very similar hardware: A6 quad-core chip, QXGA resolution (1536x2048 pixels compared to iPad 2's 1024x768), and 14000 mAh battery, twice the capacity of the iPad 2. The only reported difference between the two is rather unconvincing: A 5-megapixel camera vs. 8-megapixel. If this holds any truth, Apple's retail store would turn into a camera shop. Holding both the iPads, customers would start asking if the extra megapixels would capture better photos, or even wonder if they would like a kick-ass 10-inch digital camera. The iPad 2, still one of the best selling tablets despite the availability of numerous more aggressively priced Androids, will sell alongside with the iPad 3 as an entry-level device with an appropriate price tag. Apple employed the same strategy to enter the low-end smartphone market by selling older devices like the iPhone 3GS and the iPhone 4 at a discount, while selling its best and latest at full price. Earlier, the iPad 3 was rumored to be announced as early as February, but the latest report from DigiTimes places the date on January 26th at the MacWorld/iWorld conference, a show Apple stopped participating in during 2010. As usual, take the rumors with a pinch of salt. Photo credit: Robert Scoble