We have been wondering what Apple would do with the iPad 2 when they launch the new iPad 3 next week, and now it would appear that Apple may sell the iPad 2 alongside the iPad 2 as a cheaper model.
This is something Apple has done in the past with the iPhone, offering last years model as a cheap option alongside the new device, and now it would appear that they could be following the same pattern with the iPad 2 and iPad 3.

According to a recent report by Digitimes, Apple will launch a new 8GB iPad 2 at the same time as the iPad 3, of course this is just a rumor at the moment, and Apple could very well discontinue the iPad 2 when they launch the iPad 3.
If Apple decide to continue to sell the iPad 2 along with the new iPad 3, then we suspect that the iPad 3 will be called the iPad HD or something similar, I guess we will have to wait until next Wednesday to find out.
Source Mac Rumors