We've heard these rumors in bits and pieces before, but today Reuters reports with conviction that the next will have front and rear-facing cameras, a higher res display, and will start production in the early months of next year.
Reuters cites multiple supplier sources, two of whom said that production would begin soon for iPad 2. The next generation of Apple's tablet is expected to be thinner and lighter, with an improved screen resolution that will can hopefully keep up with the iPhone 4's retina display. Most importantly, it will add a front-facing camera to allow for video chat.
It's everything you would expect, given Apple's track record of yearly product updates. But the more confirmation I get about an iPad 2 FaceTime camera, the more I start saving up my pennies. [Reuters]