iPad 2 shipping from Foxconn in February

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"Apple originally planned to start mass production in January, but because the device's firmware is currently still in testing, Apple has been postponing the schedule. Since Apple manufacturer Foxconn Electronics' new plants in Chengdu are still in pilot production, the 2nd generation iPad will be mainly supplied by its Shenzhen plants, while the company's upstream component partners have all been notified of the shipments schedule." --Digitimes

Apple manufacturer Foxconn Electronics will begin to ship the 2nd generation iPad by the end of February, according to a report from Digitimes.

The Shenzen, China plant will initially supply between 400,000 and 600,000 units over the course of the next 100 days. Digitimes said hardware for the device is still being tested. Apple manufacturer Foxconn Electronics will eventually supply Apple with products from a plant in Chengdu, but they're still in production, Digitimes said.

An analyst from Gleacher & Company recently suggested that the 2nd generation iPad will be on sale in Q1 2011/ April 2011 in the U.S. Earlier reports also said that Apple would diverge from its typical update cycle, offering a 2nd generation iPad in time for the holidays, but Apple has made no announcements.

It has been suggested that the 2nd generation iPad, which is not the official name, will include features like a dual-camera setup that would support Facetime video chats. Gamers are hopeful that the updated device will have a gyroscopic setup for motion control. The iPad's 30-pin dock connector could be replaced with a mini-USB report, and a Cortex A9 CPU and additional memory could be added to give the new tablet more power.

Since its launch last April, iPad sales have been strong. In the third quarter, Apple sold 4.19 million iPads, but sales this quarter might be lower than expected, at around five million.

Digitimes said Apple will start clearing inventory for the updated version of the tablet. IPad 2 rumors are also floating as to whether Apple will manage to include a Retina Display on the new model. iPads have been shipping at a clip of between 3 and 7 million units over the last three quarters (estimated for Q4). If this rumor holds true, expect to see stories about iPad supply shortages around late January as the supply chain starts preparing for the new model.