Thus far most of the speculation about the iPad 3’s size has been that it would actually be thicker than its predecessor: a retina display, after all, is thicker than the display found in the iPad 2. Now, however, there are reports that Apple may have a new kind of display in the works that will allow them to put a retina display on the iPad 3 while still trimming the device down to make it as thin or thinner than the current model.

Citing their usual sources in Apple’s supply chain, DigiTimes is reporting this morning that Apple will be adopting indium gallium zinc oxide (IGZO) display panels for its next generation tablet. These panels are reportedly going to be manufactured by Sharp, who has contracted with apple to produce displays for Apple.

As always, you should read any rumor with a few grains of salt close at hand. If true, however, this is a pretty interesting bit of information. Apart from the under-the-hood improvements and the addition of a couple bells and whistles – i.e., cameras and magnets for the Smart Cover – the feature of the iPad 2 that generated the most buzz was the dramatic reduction in thickness and weight over the first generation model. Making the iPad 3 as thin or thinner still, especially in light of all the speculation that it will be heavier, would be a pretty popular move for Apple.

What do you think? Would a thinner iPad be a selling point for you? Let us know in the comments.