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It features a much improved resolution compared to previous iPads, with 3.1 million pixels making it sharper than a HD television. It also has a five-megapixel rear camera and can shoot 1080p video footage.
It will be powered by a new A5X chip which has improved graphics performance.
Apple CEO Tim Cook said the tablet would be the company's flagship "post PC" product - and he insisted that he stood by a previous prediction that tablets would become more common than home PCs.
It is 9.4mm thick and the basic 16GB model (just with wi-fi) will cost £399, while the top-of-the-range 64GB model with wi-fi and 4G will cost £659. The existing iPad 2 will still be sold at a reduced price of £329.
There is no 4G network in the UK at present and there is unlikely to be coverage for at least a year.
The new iPad is expected to go on sale on Friday, March 16.
Will you be camping outside the Apple Store to get one? Comment below...