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There are a bunch of form-factor rumors. Some say the case is a millimeter or so thicker. Some say the bevel is smaller. Some say there's a bit of a swoop in the case design (this could simply be a rehash of the iPhone 5 rumors).
The Magic 8 Ball: The Magic 8 Ball reads, "Better not tell you now". It would be a shame if Apple changed the form-factor with all the nice add-ons that support the current design, but Apple's screwed its aftermarket before, many times.
Image: Venture Beat reports that the iPad 3 will be slightly thicker than the iPad 2.
This could go hand-in-hand with the thicker case. A slightly thicker case, combined with some better battery technology, could yield a longer run-time.
The Magic 8 Ball: The Magic 8 Ball reads, "Outlook good". One area where Apple constantly works on improving is battery life.
Image: After several hours of use, Apple wants the battery life indicator to stay "green" rather than its usual "red" color.
If the iPad is to properly support Siri and some of the advanced camera functions, it needs more processing power. I'd also like to see it have more RAM, but I have even greater doubts about that. Of course, the more processing power there is, the bigger the impact on battery power. Physics is like that.
Image: This photo shows an alleged iPad 3 mainboard with an A5 processor. Image credit: WeiPhone.com
The Magic 8 Ball: The Magic 8 Ball reads, "It is decidedly so". Probably dual-core. Probably not quad-core.