I was watching someone’s video where he just plunked down $50 for an iPad 2 aftermarket case that would turn on or off the iPad 2 when you open or close the case cover. I knew that Apple was using magnets and I decided to take my cheapo $16 Ebay case and modify it for the same feature. All you need is an earth magnet, glue, tape and a knife. I used a 1mm x 12mm round magnet. I am sure you could use a smaller diameter magnet but I had nothing smaller that was thin. The thinner the better so it does not stick up out of the case.
The first thing you need to do is take your magnet and find a location on the iPad 2 where it triggers the on/off switch. The approximate location is 3” down the top right side of your iPad 2. Once you find the spot, don’t move the magnet, take a piece of scotch tape rolled in a loop and put it on the magnet. Next close your case lid so the case will stick to the tape. Now carefully lift your case lid with the magnet stuck to it and mark off the spot with a pencil. Then use a knife and cut a square out. Make the cut in such a way that it’s a flap so you can cover the magnet with the material from your case. Gouge out some of the material in your case so the magnet will recess inside the case so there is no bump. I used a screw driver. Once you are done place the magnet in your cutout and just for testing put a piece of tape over the area and test your new magnetic switch. Once your happy glue your magnet in place. I used a glue called Goop which is available at most hardware stores like Home Depot.
Now you could also go one step further and make several cutouts and make a lid that sticks to the iPad.
A 20 pack of 10mm x 1mm magnets is under $3 on Ebay or Deal Extreme including shipping. Earth magnets are lots of fun and have many uses. I have a draw full of magnets for different projects. I use them often on radio controlled airplanes to hold down canopies and hatches.