Not all iPad 2 are created equal. The newer lot of the iPad 2 ( being called iPad 2.4) is using the same A5 processor but manufactured using Samsung's newer 32 nm Lithography. There are three key benefits Apple derives as it moves from the current 45 nm technology to 32 nm.
The first is the reduction in the cost of manufacturing by moving to lower geometry. A processor made with 32 nm fabrication, typically takes 57% area as compared to the one manufactured with 45 nm. You get close to 40% more processors out of single 300 nm wafer. This reduces the manufacturing cost. The cost saving is not great, as the processor cost is of the order of $20 which is not huge but if you are looking at volume that runs several tens of millions, every dollar counts.
The bigger advantage is the long term benefit. Apple wants to verify the 32 nm manufacturing process before it makes change in the manufacturing process plus design in its forthcoming iPhone 5 or iPad 3 design. Making changes in manufacturing process plus the design in a risky affair. If there is a failure it is difficult to debug, isolate and fix. Chip manufacturing companies take one thing at a time. Intel calls it a tick tock process. With Apple's 32 nm namufacturing process verified, it can now aim at iterating the next design (in iPhone 4 and iPad 3) with 32 nm.
The 32 nm chip leaks less current and improves battery life. This is the major advantage of moving to the 32 nm technology. Anandtech actually measured the battery life with in iPad 2 with newer 32 nm A5 processor Vs the older 45 nm A5 processor and found close to 15% to 20% better battery life. This is significant by any standard.
Unfortunately there is no quick way to identify the iPad 2 with newer chip vs older chip, unless you open the box. One way to identify if the iPad 2 comes with newer chip is by running the Geekbench benchmarks. Here is how it looks like.
Image courtesy – Anandtech
Better battery life, lower price ( $399 Vs $499 in iPad3 ) makes iPad 2 a lucrative offer. Under normal condition you can expect over 11 hours of battery life. If Apple would have used the battery it used in iPad 3, the battery life could have been double – about 23 hours – just shy of a full 24 hour continuous use.
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