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.