• by Mark Walsh  @markfwal, March 2, 2011

Following weeks of fevered speculation, Apple unveiled the latest version of the iPad -- a faster, slimmer upgrade of its iconic tablet computer offering new features like a front-facing camera and built-in gyroscope. The new model, shipping March 11, will be available in white as well as black -- at the same $499 entry price as the original.

Introduced last April by Apple CEO Steve Jobs as a "magical and revolutionary" device, fitting in between the smartphone and the laptop, the iPad sold nearly 15 million units in 2010 and almost singlehandedly established the tablet category.

Although he took his second medical leave in January, Jobs entered the launch event today in San Francisco to a standing ovation. He said he couldn't miss the occasion, after all the hard work put into updating the iPad. He called the device the company's "fastest product to stardom," capturing more than 90% of the tablet PC market to date.

But with a slew of competing tablets rolling out this year from Motorola, HTC, HP and Samsung, Apple isn't resting on the success of the iPad. To that end, the new model will be equipped with an A5 chip with dual-core processors that will make the iPad 2 twice as fast and deliver "nine times" the graphics performace of its predecessor, according to Jobs.

When it comes to its look and feel, the upgrade is slightly rounder and one-third thinner than the original. The new iPad is also lighter -- weighing in at 1.3 pounds, down from 1.5. The 10-hour battery life will be the same as the first iPad, while the new front-facing camera and gyroscope add features already found on the iPhone 4.

The new camera means iPad owners will likewise now be able to have video chats with friends via Apple's FaceTime technology. In addition to the $499 base price for the 16 gigabyte model, Apple will also offer 32 GB and 64 GB versions of the latest iPad for $599 and $699, respectively. The new device will also be available for both AT&T and Verizon Wireless's networks.

In addition to the iPad itself, Apple also introduced a new type of case for the tablet called "Smart Covers," which affix via magnets, cover only the front of the device and can be folded to prop it up.

Technology research firm IDC projects the tablet market will nearly triple from 17 million to 44.6 million units shipped this year, with the U.S. representing nearly 40% of the total. In 2012, worldwide shipments are expected to grow to 70.8 million. Looking further out, iSuppli projects that tablet unit sales will reach 242 million by 2015.

Apple's early dominance of the tablet category hasn't stopped a host of new devices from entering the fray, including Motorola's new Xoom device, the latest version of Samsung's Galaxy Tab, the BlackBerry Playbook, and HP's TouchPad. Many, like the Xoom and the Samsung Tab, are powered by Google's Android operating system, which has quickly become a legitimate rival to the iPhone in the smartphone market.

Overall, there are 102 tablets from 64 different makers either available now or in the works, according to an estimate from research company PRTM cited in a Wall Street Journal report today. Taking a shot at Apple's growing field of challengers in the tablet space, Jobs playfully asked if 2011 "will be the year of the copycat?"

The Journal story suggested that the torrent of tablets could lead to a price war to gain shelf space at retail locations. The fact that Apple didn't cut the starting price of the iPad means it won't start with the leading device in the category. At $499, it's already well below the $799 price tag for the Xoom, for example. (Motorola doesn't offer an equivalent 16 GB version of the Xoom.)

But NPD analyst Stephen Baker noted that "other, presumably high-quality, tier-one branded product, could be selling lower at their launches at $299, or even lower prices during the holiday," in a Tuesday blog post.

Despite the rush of new tablet devices from other companies, eMarketer estimates the iPad will still account for 78% of global tablet sales in 2011. And DigiTimes reports that Apple plans to ship between 6 million and 6.5 million iPads in the first quarter of 2011, including both original and new versions. Apple is also aiming for shipment totals to hit 40 million units for the full year, the report added.

"Overall, the big message today is that Apple is offering a version two device while everyone else is still attempting to ship their first version one devices," said Carl Howe, director of research at technology research firm Yankee Group.

In debuting the updated iPad, Jobs framed it as part of a "post-PC" era, along with the iPhone and iPod, which collectively form the bulk of Apple's revenue today. He also pointed out that there are now 65,000 apps that take "full advantage" of the iPad, giving Apple a big head start in tablet apps, as it has had on the iPhone.

Among other announcements, Apple Wednesday introduced the new version of its iOS mobile operating system, promising faster Web browsing on Safari, enhancements to AirPlay streaming service, and a new personal hotspot feature for sharing an iPhone 4 data connection over Wi-Fi with up to five devices.