Apple on Wednesday finally unveiled its next-generation tablet, dubbed the iPad 2. The device is 33 percent thinner, runs a new A5 chip, and will come in white, Apple said.

The iPad 2 will start shipping on March 11 in the U.S., and on March 25 in 26 additional countries. Like the original iPad, pricing will start at $499 for the Wi-Fi-only 16GB. The 32GB Wi-Fi iPad 2 will be $599, and the 64GB will be $699. For Wi-Fi+3G, the 16GB will be $629, the 32GB will be $729, and the 64GB will be $829.

Despite taking a medical leave of absense earlier this year, Apple CEO Steve Jobs was on hand in San Francisco to unveil the new device, receiving a standing ovation from the crowd. "We've been working on this product for awhile and I didn't want to miss today," Jobs said.

As expected, the iPad 2 will include a front- and rear-facing camera, and a built-in gyroscope from the iPod touch and iPhone. The rear camera supports HD up to 720p at 30 frames per second; the still camera has 5x digital zoom. The front camera is VGA.

The new device is thinner, going from 13.4 mm to 8.8mm thick. It's thinner than the iPhone 4, Jobs said. It is 9.5 inches tall and 7.31 inches wide, and weight 1.33 pounds. Jobs said that despite the smaller size, battery life will remain at 10 hours.

The iPad 2 will include a new, faster 1-GHz A5 chip from the Apple "chip wizards." The dual-core processor boasts up to 2x faster CPU performance, 9x faster graphics, and low-power consumption. "This will be the first dual-core tablet to ship in volume," Jobs siad.

Jobs also promised that the iPad 2 will ship in black and white from day one. It will also be available on both Verizon and AT&T.

On the accessory front, a $39 HDMI video-out accessory cable delivers mirrored video output up to 1080p, which works with all apps. Anything you see on an iPad screen you can see on the TV, Jobs said. There's no setup or configuration and you can charge your iPad while using it.

Jobs also unveiled a Smart Cover, which will better showcase the iPad 2. Jobs said he didn't like the original iPad cover because it covered up his pretty product and made it bulkier. The Smart Cover bends and folds around to double as a stand. It instantly wakes up the iPad when you open it and puts it to sleep when it's closed. Smart Cover magnetically grasps the screen and auto-aligns perfectly, Jobs said.

Smart Case comes in five poly colors, all $39, and five leather colors, which will retail for $69.

Apple also showed off iOS 4.3, the next version of its mobile operating system.

Jobs ribbed his competitors during the presentation, dubbing 2011 the year of the copycats. People laughed at Apple for calling the iPad "magical" and said the price was unreasonable, he said, but ask those competitors now if the price is reasonable. Apple sold 15 million iPads in 2010, bringing in $9.5 billion in revenue. That left competitors "flummoxed," Jobs said.

The App Store now has 65,000 iPad-focused apps. Competitors, meanwhile, launch with "at most," 100 apps, "and I think we are being a little generous here," Jobs said.

Jobs also confirmed that Random House books are now available via iBooks.

The announcement caps off months of speculation - from when the fabled tablet would actually appear to what new features it might contain. Most were in agreement that the device would include a front-facing camera, particularly since that feature is now available on competing devices like the Samsung Galaxy Tab and the Motorola Xoom. Others also thought a slimmer and lighter form factor was in the works. Talk about a white iPad was also in the mix.

Stay tuned for more details from today's event and some hands-on impressions from PCMag analysts. For more, see PCMag's live blog and check out 11 Killer Features That Could Take the iPad to the Next Level and What the Apple iPad 2 Can Teach Google.