Rumours pertaining to an SD card slot on the Apple iPad 2 have been running since late last year when designs and images of what seemed to be silicon casings for the device emerged.
However, an unnamed source told Appleinsider that the cutout on the side that many believed to have been for a SD card slot was actually meant for relocating the tablet's SIM card slot.
This would allow for a smaller PCB, which in turn would allow Apple to pack a bigger battery thus significantly improving battery life.
Perhaps more importantly, one needs to look at the motivation behind the introduction of a card slot on the iPad 2.
Throwing in this feature would mean that users would be able to increase the onboard capacity of each SKU, which would encourage potential customers to buy the cheapest possible model and an additional SD Card.
This would depress the average selling price, which is definitely not what Apple wants given that the 64GB model is currently one of the more popular sellers.
Furthermore, introducing an SD card reader means that there will be more electronics on the board, which will consume more power and reduce battery life.