The Apple iPad 2 is shown during its launch event in San Francisco, California March 2, 2011. [Photo/Agencies]

The new iPad will make it even harder for rivals to compete.

"Overall, the big message today is that Apple is offering a version 2 device while everyone else is still attempting to ship their first version 1 devices," said Yankee Group analyst Carl Howe.

He said the iPad 2's improvements are modest over the first one, but it will nonetheless stand out because there are more apps available.

Sarah Rotman Eps, a Forrester Research analyst, said iPads should make up at least 20 million of the 24.1 million tablet computers she expects people in the US to buy this year.

Tablet computers existed long before the iPad, but it took Apple to build a device that made sense to consumers. Apple simplified the software, packed it in sleek, shiny hardware and sold it to a generation of gadget lovers who, most likely, already have a smart phone and a laptop that serve most of the same functions.

The new iPads will cost the same as the originals, $499 to $829, depending on storage space and whether or not they can connect to the Internet over a cellular network. Apple said there will be black and white versions, despite its problems getting the promised white iPhone 4 models to market. The first iPad came only in black. In the US, the iPad 2 will work on AT&T Inc. and Verizon Wireless.

A reporter who used a white iPad 2 immediately after the announcement found it noticeably thinner and more curvy. YouTube video loaded quickly using AT&T's data service, and "Toy Story 3" played smoothly. Given its size, the iPad 2 appeared impractical for taking lots of photos, but both cameras will help with video chats, the front one to show the caller, and the back one to show what the caller is seeing.

Jobs also introduced a new accessory for the iPad that will let people connect the tablet to high-definition televisions, so they can watch videos up to 1080p in resolution on the bigger screen. The $39 part plugs into the iPad's charging port and connects to an HDMI cable.

After its March 11 US launch, the iPad 2 goes on sale March 25 in at least 26 other markets, including Mexico, New Zealand, Spain and other European countries.

Apple also introduced updates to the software that runs on the iPad, iPhone and iPod Touch devices. The company said the update would work on GSM-type iPhone 3GS and iPhone 4 models; Verizon Wireless' version uses a different technology.

The iPad 2 with a Smart Cover is shown in use in the demonstration area after the iPad 2 launch during an Apple event in San Francisco, California March 2, 2011. [Photo/Agencies]