Sources claim new components are being shipped.
Apple's iPad 2 is outselling all its competition at present, as Q3 sales reached 11 million units to dwarf the likes of the BlackBerry PlayBook.
Supply chain sources say the next generation iPad isn't far off as new parts and components have started to be shipped to manufacturers, according to Digitimes.
The sources claim the new shipments have resulted in a reduction of iPad 2 parts being delivered, which means the iPad 3 could arrive within three to four months.
However, they go on to say that iPad 2 production will stay at 14-15 million units for Q4 but will fall down to 4-5 million units in Q1 of 2012 to make way for the new devices.
This, will see production for the third iPad reach up to 9.8 million units in Q1 2012, according to the sources.
Judging from the success of the iPad 2, the next in line will receive an equal amount of clamour.