Following a report in Digitimes, blogs repeated the rumor late yesterday that the iPad and iPhone will have a complete overhaul in 2012. The anonymous source: the guys in Asia who supply the parts. You can read a useful discussion on AppleInsider. According to the rumors, there are two iPads in development: one that comes in March that's a modest update, and one later that would be the iPad 3.
AppleInsider repeats an earlier rumor that the March release could be the "interim option" mentioned by sources that could have a 1,600 x 1,200 display. It's also rumored that the iPad 2 update will be thinner, with a longer battery life, and will begin production at the end of this year. Apparently, a higher-resolution, 2,046 x 1,536 screem is being explored, but there are inherent difficulties with this display, including the high cost and production constraints.
A next generation iPhone is expected in the second half of the year, according to the rumor. This could be the iPhone that everyone was hoping for last month, with a 4-inch display.
AppleInsider says that DigiTimes's record of accuracy is spotty, so it's hard to know the validity of the claims. But it's hardly a wild claim, since one sort of expects that the iPad will eventually get thinner and have a higher resolution display.