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I think the new size iPad will introduce Apple's new Augmented Reality functionality. This functionality has been heralded already by Tim Cook. 

Now the way I think the Augmented Reality functionality will work is to have facial tracking capability on the front of the device. This will allow the machine to display a "seamless" version of reality on the screen (actually the bezel will be the "seam", that is why they are reducing it as much as possible) as it can work out exactly where the viewer's eyes are all the time.

Obviously this functionality is more pertinant with an iPad compared to an iPhone as an iPad provided its viewer with a bigger chunk of "reality" (for the same distance from the eye, of course).

I think this will be BIG. I just hope the technology can be protected by patents or by some other means. Maybe the fact that Apple designs their own chips now will be sufficient to stop the opposition from copying.