The new iPad 2 will quadruple resolution, but fall short of being a Retina display
Could the guys at Cupertino transfer this technology over to the upcoming Apple iPad 2 sequel? To make that happen, Apple would have to make sure that the 9.7 inch screen had a 300+ ppi which would have been a daunting task. It would have required a massive increase in resolution from the original model's 1024 x 768 (which had ppi of 132). So Apple put the kibosh on the Retina display on the Apple iPad 2 and decided instead to quadruple both directions. The new screen will have a ppi of 260, short of the magic of Retina display, but still specs that suggest a very clear and vivid display.
And by evenly expanding both directions of the screen, apps can be shipped that will handle both the new display on the follow-up tablet and the existing display on the original tablet by including 2 types of graphics-file.png and firstname.lastname@example.org which is the higher-definition version. To come up with the processing power needed to quadruple the resolution, there is speculation that the iPad sequel will have a new A4 ARM processor under the hood, most likely called the A5.
The possibility of the 4 times increase in the iPad 2 resolution comes after the multiple release of some "@2" graphics in some of Apple's iBooks apps including the "Wood Tile@2x.png" background image that covers 1536x800, rather than the standard 768x400 image used on the original iPad.