Digitimes are reporting that component companies producing parts for the current iPad, the iPad 2, are slowing production, while ramping up manufacture of parts for the next generation iPad model.

Factories across China and Taiwan are gearing up for the iPad 3 (iPad 2S?) launch and supplying Foxconn with all the necessary parts so production can begin in January 2012.

It is also rumoured that Foxconn China, have reduced vacation time for factory staff in the iPad department to keep up with the expected demand of the iPad 3.

Instead of getting a 9 day holiday like other Foxconn workers during January’s Chinese new year celebration, iPad staff will only get a 5 day break.

It is estimated that Apple have ordered a staggering 9.5-9.8 million units in the first quarter of 2012.

iPad 3 Specification

As usual Apple and Foxconn have been tight lipped about the iPad 3′s specification, however some rumors have slipped out suggestion the next generation iPad will have a sightly thicker body than the iPad 2, a higher resolution 2,048 x 1,536 screen, better rear camera and possibly a quad-core Apple A6 Chip.

iPad Mini on the way?

Other news and rumors suggest Apple are also working on a smaller iPad with a 7-inch screen to compete with the popular Amazon Kindle Fire and Nook Tablet.

The new smaller iPad could even be marketed as a new 7-inch (5-inch) iPod Touch and would make up for a lack of iPod Touch refresh this year.

Source: Digitimes