iPad 2, the Apple iPad Killer: Tech Edge

NEW YORK (TheStreet) -- Apple(AAPL_) has a good, but delicate, problem: How do you move millions of first-generation iPads during the holidays, when everyone knows there's a better version just around the corner?
Apple's iPad faces very little tablet competition this year as the gift-giving season heats up. TheSamsung Galaxy Tab is cute, but pricey. TheResearch In Motion(RIMM_) PlayBook is a 2011 story. Dell's(DELL_) Streak was a bust.

In fact, the only device that stands in the way of a blowout Apple iPad Christmas sales performance is the iPad 2 -- if people hold out for it.

Analysts familiar with Apple's iPad plans say the next version will have both GSM and CDMA network compatibility, thanks to Qualcomm(QCOM_) chips, front- and rear-facing cameras for FaceTime video chats and improved processing and memory capacity.

The iPad 2 is expected to go into production in January and launch before the end of the March quarter.

With a huge lead in the market and all the improvements, sales targets for the iPad 2 are upwards of 50 million next year.

So will the option to have something under the tree in December outweigh the prospects of something significantly better eight weeks later?