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We had earlier reported that Apple is planning to launch an HD version of the iPad 2 later in 2011. But now it seems that the model has been cancelled. Peter Miserk of Jefferies and Co said that the cancellation of the iPad 2 HD has resulted in the need for 1 Million units to become retooled. The iPad 2 Q4 2011 manufacturing has also been cut down from 13.6 Million units to 12 Million units. Misek reported that he expects to see a new iPad 3 earlier next year probably in January 2012 and that the reason for the decrease in manufacturing is due to inventory caution taken considering the potential demand slowdown. source

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