It's like a fact now next generation iPad will get dual-core processor, and according to Ming-Chi Kuo of Concord Securities that ARM Cortex-A9 processor will run at 1.2GHz. Ming believes the new processor will bring performance on par with Qualcomm’s new Snapdragon and NVIDIA’s upcoming Tegra 2 3D chips.

However, we think that the new Apple A5 processor will offer better overall performance when compared to Qualcomm and NVIDIA chips because it will be using new dual-core PowerVR SGX543MP2 graphics core along side ARM processor cores and will be custom designed for iOS devices.

The new A5 processor will also offer higher 512MB RAM at a faster 1,066MHz clock speed. Some rumors are suggesting that Apple might even go for 1GB RAM making the processor tick even faster.

Kuo further speculates that iPad 2 will not have Retina Display but feature a thinner LCD with anti reflective treatment for better outdoor visibility. As for 3G connectivity, iPad 2 will have two separate models supporting HSPA and EVDO, rather than one model supporting both the standards.

On the camera side, Kuo suggests that iPad 2 will have 1-megapixel back camera and 0.3-megapixel front VGA camera. Our sources say that Kuo is wrong about the camera, and the back camera will have higher megapixel count with 3- or 5-megapixel camera.

Apple is planning to make 4.5 to 5 million iPads starting in February for the first quarter and would launch the new iPad by end of March or early April, according to Kuo. Our sources still maintain that Apple will announce the new iPad within few weeks and shipment should start by end of first quarter.