Apple has reportedly has started development of the second generation iPad using the same design concept as for the iPhone 4G, and will use an OLED panel, according to sources in the component industry.

Apple is said to be aiming to launch the device in 2011, but a Digitimes Research ( senior analyst said the cost of OLED panels are much too high for the iPad. He pointed out that OLED panels’ high price will still be the major obstacle for them to be adopted in the iPad in 2011.

Kuo noted that the current price of the 9.7-inch LCD panel for iPad is about US$60-70, but the price of a 9.7-inch OLED panel is about US$500. He said the price gap is unlikely to narrow significantly in 2010 or 2011.