The Wall Street Journal offers their own sources that confirm that Apple will be using Sharp as a source of display parts for the upcoming iPad 3.
Apple Inc. is adding Sharp Corp. as a maker of screens used in the next-generation iPad, people familiar with the situation said Thursday, as the U.S. consumer electronics company moves to diversify component suppliers for its products.
According to their source, Apple is also investing in Sharp's panel manufacturing factories in Japan to ensure it can get enough supplies for its iOS devices.

Sharp already supplies iPhone panels and is also said to be supplying panels for the next iPhone which is also due next year.
Sharp has been mentioned a number of times by various rumors as a new source of iPad screens for Apple. A recent analyst report said that production of iPad 3 screens was already underway and included Samsung, LG and Sharp.
Then, just on Wednesday, another analyst reported that Sharp may actually be supplying Apple with specially designed screens for the iPad 3. According to that report, Apple and Sharp have developed a new technology to allow a thinner high resolution display for the next iPad. Finally, Sharp may also be involved in Apple's television set plans, also supplying parts for that project as well.
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//www.youtube.com/watch?v=WPzL2ujDldw
Pretty amazing site, also does solar cells. Started operations in 2010. I guess Apple would use this site.
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Edit: Ha! I got -3 votes on this. I've been to their factory. You?
Quadrupling the screen resolution is one hell of a "bump". I've never been interested in an iPad but that will certainly change if they deliver resolution at that level.
I have a feeling you don't use or like the iPad, as your main example is Farmville. Forget gaming. Have you looked at a webpage, or tried to read any text on the iPad? It's worse than a computer monitor. You see every pixel, every bit of anti-aliasing.
Think of magazines especially. The text and the photos will be amazing, to the point where using the iPad in place of a traditional periodical might be BETTER, not worse.
The iphone/ipod touch argument doesn't work because the size of the graphics are the same, it's the pixel density that changes, the clarity. Text is the same size, icons are the same size, it just all looks BETTER when you don't see pixels. It's easier to read and less strain. That applies to ALL screens, no matter the size.
God, this is like the same argument when people said the iPhone didn't need a retina display........ :mad:
Hope Apple will adopt that for the iPad3. Boosts contrast and black-levels by absorbing virtually all reflections...