Rumor: iPad 2 to lack Retina Display, SD card slot

Although Apple is likely to show off a new iPad in San Francisco on March 2nd, the unit will reportedly arrive without a Retina Display or built-in SD card slot, contrary to previous reports that both would be included.

Per Engadget, sources have stated that “engineering issues” led Apple to make last-minute design changes on the device. That’s a change from what the site reported in January.

“It’s worth noting once again that these sources have been dead right on specific Apple plans and specifications for unannounced products in the past, and we have no reason to believe these changes are due to anything more than legitimate engineering decisions made close to launch,” editor Joshua Topolsky wrote.

The report claims that Apple will introduce a thinner iPad next week, with a screen size and resolution identical to the first-generation device. The new model will reportedly include 512MB of RAM, doubling last year’s model and matching the iPhone 4, inside of a new, faster A5 processor.

The new iPad is also widely expected to include at least one forward facing camera camera for FaceTime video chat. Some third-party cases have also shown that the iPad 2 could have a rear-facing camera as well.

Topolsky also predicted that Apple will show off a preview of iOS 5 next week and issue a software development kit for developers. And he believes the company could possibly show off an expansion of its plans to expand services in the cloud.

Stay tuned for additional details as they become available.