Apple just announced in their Q1/FY2011 financial results conference call that Apple "made a two-year,
$3.9 billion deal with three suppliers to secure a
"very strategic" component for its products" and "these payments consist of both
prepayments and capital for processes and tooling, and similar to the flash agreement, they're focused in an area that we think is very strategic." Until the end of Q2/FY2011 (likely the earliest release date for the iPad 2) they will already have made prepayments in the amount of $1.7 billion ($650 million in Q1/2011FY and $1.05 billion in Q2/2011FY).
Compared to the famous flash deal in 2005 in the amount of $1 billion this is huge, and this time it's not about flash. IMHO that only leaves high resolution displays... and with $1.7 billion prepayments and capital for equipment and tooling (before the release of the iPad 2) a lot can be done... and you don't have to give display manufacturers this much money in form of prepayments and capital for process equipment and tooling if you just want to buy 9.7" 1024x768 IPS displays (especially if you have already reached supply-demand balance for that part)...
http://www.engadget.com/2011/01/18/apples-invested-in-a-very-strategic-3-9b-component-supply-ag/
(Including 3min audio clip from the conference call with the statements from COO/CEO Tim Cook and CFO Peter Oppenheimer about these deals)
PS: Sure, there's also the possibility that these deals were made for some other component. Who knows, maybe even for something IMHO crazy like the rumored 3D display for the iPhone/iPod touch, a touchscreen with tactile feedback (ala Nokia Haptikos), anti-glare coating for all MacBook Pro displays
or even a fuel cell (a guy can dream)... but my money is on high density displays for the iPad 2.