Before we deliver yet another rumor related to the iPad 3 (or whatever Apple chooses to call it), we have to point out that DigiTimes is its source. That being said, the chance of the speculation being totally inaccurate is present indeed.
It is speculated that the switch would allow for the iPad 3 to be equipped with a high-resolution display – one with a pixel density around the 330ppi mark. At the same time, it will maintain a low power consumption and will likely be thinner than its current IPS counterparts. On top of all, production costs of IGZO displays is said to be lower, which could boost Apple's profit margin figures even higher.
Producing the IGZO display panels for the next iPad iteration will be a task that Sharp will be burdened with, if the rumors are on the right track. Allegedly, the manufacturer has already shifted some of its capacity towards producing iPad-sized displays.