The elusive successor to Apple’s iPad was reportedly spotted being used at the public launch of New Corp’s digital newspaper yesterday. A Reuters eyewitness saw what appeared to be a working model of the iPad 2 with a front-facing camera at the top edge of the glass screen.

A source with knowledge of the device confirmed its existence, adding that the final release model could have other features. News Corp and Apple declined to comment.

There have been rumours for several months about the anticipated iPad 2, and what features it will include, although most reports all agree that it will come with two cameras, front and rear to address the most notable shortcoming of the original device.

If the device seen at the press conference was the iPad 2, then it marks an almost unprecedented security breach for the company which is notoriously secretive about its new products, and would rarely let even trusted developers leave the Apple building with an unreleased product, let alone permit it to be used in public at a press conference.

The iPad 2  is expected to be announced in the next few months.

On the web: Reuters