Manufacturers of cases for the Apple iPad 2 are delighted with the way the wake/sleep sensor easily adapts to most of the case designs.
iPad and case
The magnetic sensor in the iPad is designed such, that it switches on when the iPad is opened and switches off when closed. The SmartBlazer2 designed for the iPad2 has all the functionalities of the Apple’s Smart Cover. It can even be folded into a stand just like the Smart Cover. SmartBlazer2 has the additional feature of covering the sides and back of the iPad2. However, the thickness of the case is a disappointing factor.
Pad and Quill, plan to incorporate the iPad’s magnetic sensor into their Octavo case. The Octavo case is made of Italian leather and wood and feels like a bound book when touched. The magnetic sensor when integrated into the Octavo lights up the iPad when opened and switches off when closed.
Source: http://www.apple.com