The rumor of an iPad 2 HD (or iPad 3) gained more momentum over the weekend after the Korea Economic Daily cited sources saying that Apple is expected to purchase components used for its handheld devices from Samsung Electronics worth about $7.8 billion this year. Samsung will supply Apple with liquid crystal displays, mobile application processors and NAND flash memory chips used in iPhones and iPads, according to sources.

Such a deal coincides with statements made by Apple COO Tim Cook during last month's earnings call that Apple has been entering agreements with suppliers of key components, totaling at the time $3.9 billion. Cook would not elaborate on the deals, saying: "They're focused in an area that we feel is very strategic, and so I'd prefer not to go into more detail about what specific area it's in. But it's the same kind of thinking [similar to the Flash agreement] that led us to those deals."

It's a good bet Apple is tapping into its enormous $50 billion war chest to lock up display suppliers, much like it did with Flash memory suppliers for the iPod. Clearly, Apple is working to get those high resolution displays on the iPad as soon as it can.

It's always possible that Apple might push back the next iPad to the fall timeframe, or whenever it is able to deliver the higher resolution displays. (However, last week that the iPad 2 has already entered production.)