Retina display in iPad 3, jumbo iPod on the way?

The Cupertino rumor mill never ceases to get interesting and today’s leak definitely raised a few more pairs of eyebrows than usual. AppleInsider reports that industry analyst Ming-Chi Kuo, who has a good track record of inside info accuracy (he squealed on Apple’s new iPhone 4 resolution and RAM), has credible information regarding Apple’s upcoming plans for the iPad and the iPod Touch. Evidence was recently found of a 2048×1536 resolution wallpaper embedded into Apple’s iBooks 1.1 app causing a slew of speculation that the iPad 2 will boast a high resolution Retina Display. Not so, says Kuo.

Kuo says that although the iPad 2 will have a new display, it won’t be any different resolution-wise. The industry doesn’t have the capability or capacity to build 9.7 inch Retina Displays fast and cheap enough to keep up with Apple’s iPad demand at this time, so Apple is opting for a thinner display panel that performs better in direct sunlight and reduces glare and reflections. So why the hi-res wallpaper in iBooks? Although the industry can’t mass-produce big Retina Displays fast enough right now, it will by the time the iPad 3 rolls around. The iPad 3’s display will all feature a much better viewing angle and the anti-reflective technology that will be deployed in the iPad 2’s display.

Kuo also says that Apple is planning an in-between sized product that will target the market looking for something bigger than an iPod Touch but not as big as an iPad. Interesting, considering how Apple has repeatedly gone on record to blast 7-inch tablets and boast that 10 inches is the minimum required screen size for a tablet. But Kuo re-assures that Apple won’t be labeling it as an iPad, but perhaps as an oversized iPod to fill the market gap. A high resolution 5 inch iPod Touch is definitely a possibility to fill consumer needs for a media device that isn’t too bulky yet isn’t too tiny. Kuo is uncertain whether or not this will be an iPhone or an iPod, but he is pretty confident that such a device is coming.

You can read the full AppleInsider report here.