Thinner, Lighter, Faster iPad 2

The new version is also lighter at 1.3lbs versus 1.5lbs. Normally, a smaller lighter device would mean a smaller battery, however Apple said the iPad 2 will retain a battery life of up to 10 hours. There is over one month of standby before it needs to be recharged.

In another innovation, the second generation will come in both black and white with both versions available to order immediately. However, like its predecessor, the iPad 2still has no built-in memory card slot or USB port, and no Flash support

Mr Jobs drew cheers from the audience with a promise the new improved iPad will be no more expensive than the original, starting at $499 and going up to $829 in the U.S. The new version will be available in many countries from March 11, while it will go on sale around the world, including the UK and Ireland, on March 25.

The software operating system is being updated while a number of new Apps have been unveiled linked to movie editing and uploading video clips to the internet. It will also allow users to touch and play virtual instruments including grand piano, drums and guitar.

Apple's iPad has been a huge success since being launched a little over a year ago with sales of 15million, which have outstripped even the company's own expectations.

Rival tech firms have launched a host of tablet computers which claim to match - and in some cases surpass - the iPad. The challenge is led by Motorola's Xoom, together with the Samsung Galaxy Tab 10.1, while others from the BlackBerry manufacturer RIM and Hewlett Packard are also on the horizon.

Technology analyst at Ovum, Adam Leach, said: 'In such a fast moving market Apple is forced to release new versions of its hardware to stay ahead.

'Apple clearly had first mover advantage, however, its competitors have been hot on its heels with a slew of tablet devices from big brand vendors such as Samsung, Motorola, HP, HTC and RIM, all of which have announced tablet devices which aim to replicate the Apple experience, which is notoriously difficult to match.'