DigiTimes is reporting that Apple is cutting back on display orders in Q4 2011 in preparation for the iPad 3.

Apple has been reportedly controlling iPad 2 panel inventories, which might affect iPad 2 panel shipments for suppliers including Samsung Electronics, LG Display and Chimei Innolux (CMI) in the fourth quarter of 2011, according to industry sources.

While Apple is adjusting panel inventory for iPad 2, Samsung and Sharp already began shipping panels for the next-generation iPads to Apple in October, and Taiwan-based touch panel makers TPK Holding and Wintek will begin to ship touch panels for the new iPads to the supply chain in November-December, the sources noted.

While it doesn’t detail any differences in the iPad 3 display many believe that it will come with a Retina Display.

Other rumored features include LTE integration, Siri and a quad-core A6 processor.