According to an anonymous Chinese source, iPad 2 will be slightly smaller, but will retain the 9.7” LCD panel. This basically means that Apple has reduced the size of the bezel surrounding the screen to decrease the overall size. The source claims the new dimensions will be 238mm x 186mm against 242.8mm x 189.7mm dimensions of the current iPad. The rear of the iPad 2 will also be flatter and similar in styling to the latest iPod Touch.

There was more excitement a few weeks ago, after a case supplier allegedly leaked some information on iPad 2, suggesting that a USB or SD Card slot may be included. This new rumor however puts paid to that idea by suggesting that the slot is actually for a wide-ranged speaker for improved audio quality.

The final part of the rumor suggests that the ALS (Ambient Light Sensor) has been moved to a new position at the top centre of the rear panel and has also been reduced in size to 3mm.

Apple did take some heat for the thickness of the bezel surrounding the screen on the first iPad, so making it smaller on iPad 2 does make a lot of sense. Improved audio quality is also important for a media centric device so these rumors, while not ground breaking, may turn out to be spot on. What do you think? Let us know in the comments.