There is a lot of speculation about a possible launch of the third generation of Apple’s iPad in the coming months as some reports suggests that the factories in China are working continuously to produce thousands of units.

New reports an rumors about the launch of the iPad 3 emerge every week with often contradictory details. Last week, when the technology world was focusing on the Consumer Electronics Show in Las Vegas, a Bloomberg News reported that the iPad 3 might be launched in March with 4G LTE connectivity and will feature a faster processor and a higher resolution touch screen.

Sources from Apple’s supply chain have said that the company’s partner started production at the beginning of this month. They said that factories are running non stop in the country and churning out thousands of units.

The new version of the tablet will feature a more impressive screen and offer faster video graphics and Long Term Evolutionary (4G) capabilities and others. Pegatron Technology, which is one of the biggest manufacturers of the iPad, has reportedly started filing an order of iPad 3 units to be released in March.

The indications came after technology website iLounge has shown a new shell of the new iPad backstage at the Consumer Electronics Show (CES) in Las Vegas recently.

Sources said that iPad 3 is very similar to the earlier version except it is slightly thicker than iPad 2. Apple has not commented on reports about circulating a third generation tablet, Apple TV and an iPhone 5 that are circulating last year.

Meanwhile, Japanese website Mackotakara has said in a report that the uthe iPad 3 tablet and an update to Apple's iOS 5 operating system would take place in February.