Running on Apple's iPhone operating system and rigged to compete against netbooks, e-book readers and portable gaming devices, Apple's new iPad represents a new portable product category for Apple, placed smack dab between its iPhone and notebook computers.

Weighing in at 1.5 pounds (0.68 kg), the new iPad is barely half an inch thick (1.3 cm). It sports a 10-inch, high-resolution, multi-touch screen while its unibody, aluminum housing encases the usual "i-ssortment" of Apple tech, including motion-sensing accelerometers, ambient light sensors, digital compass, speakers, microphone, Bluetooth, Wi-Fi and a 10-hour battery. It's analogous to a giant iPod Touch, in fact.

The iPad can supposedly run most of the currently available iPhone apps - a measly 140,000 of them. Conveniently, seeing as the iPad's screen is so much larger than that of an iPhone or iPod Touch, Apple has released an updated SDK (software developer kit), a programming toolkit enabling developers to retrofit their current iPhone/iPod Touch apps for the bigger tablet specifications.

Apple says there will also be a selection of apps optimized to run on iPad specifically, designed from the get-go to jive with the new device's hardware and screen requirements.

Meanwhile, Apple has redesigned a number of its own iPhone applications to run on the iPad as well, including address book, calendar, Keynote (presentations), Pages (word processor) and Numbers (spreadsheet). iPad strengths as a drawing tool, photo and movie viewer and calendar were also revealed.

Out of the box, users will be able to sync over previously purchased apps and content and run them within the iPad in either actual size (small screen) or scaled up to fit the larger screen but at a lower resolution. Movies looked particularly impressive playing on the iPad's 1024 x 768-resolution screen.

As a portable game system, quick demonstrations of Gameloft's intense N.O.V.A first-person shooter and Electronic Arts' Need for Speed Shift blazing through a high-speed, 3-D racing course showed huge potential, particularly in the unit's unique, multi-touch screen and accelerometer enabled interface.

As a Wi-Fi device, Apple CEO Steve Jobs demonstrated the iPad's intuitive web surfing and email capabilities - two critical features that attract users to tiny, sub-$500 netbooks.

Also unveiled was the iBookstore, Apple's online bookshop that serves as the iPad's content backbone and ominous new competitor to Amazon's Kindle (and Sony's Reader and Skiff LLC's Skiff).

The iPad also features the ability to use multi-touch gestures, such as turning a virtual page or adjusting orientation from vertical to horizontal.

With the iPad expected to retail in March, Apple is still working on content partnerships but has already secured the support of The New York Times, Time, Penguin Books, McGraw-Hill and others.

Apple also announced an assortment of accessories, including a dock, a dock with a keyboard and a protective cover that doubles as a stand.

Apple will continue with its iPod modus operandi and sell several versions of the iPad at various price points, including the entry-level 16GB (US$499) version as well as 32GB ($599) and 64GB ($699) iPads.

Apple will also offer more expensive, 3G-enabled versions of the device with a choice of two monthly AT&T data plans ($15 for 250MB and $30 for unlimited data). Initially, 3G iPads will only be available in the US. The Wi-Fi versions of the tablet will be available internationally.

"This is our most advanced technology, in a magical and revolutionary device, at an unbelievable price." Jobs said. "We think this is going to be a really great combination."