Apple Inc. CEO Steve Jobs announces the new iPad as he speaks during an Apple Special Event at Yerba Buena Center for the Arts January 27, 2010 in San Francisco, California. Apple introduced its latest creation, the iPad, a mobile tablet browsing device that is a cross between the iPhone and a MacBook laptop. [CFP]

Apple CEO Steve Jobs unveiled the company's much-anticipated iPad tablet computer yesterday, calling it a new third category of mobile device that is neither smart phone nor laptop, but something in between.

The iPad will start at US$499, a price tag far below the US$1,000 that some analysts were expecting. But Apple must still persuade recession-weary consumers who already have other devices to open their wallets yet again. Apple plans to begin selling the iPad in two months.

Jobs said the device would be useful for reading books, playing games or watching video, describing it as "so much more intimate than a laptop and so much more capable than a smart phone."

The half-inch(1.27 centimeter)-thick iPad is larger than the company's popular iPhone but similar in design. It weighs 1.5 pounds (0.68 kilograms) and has a touch screen that is 9.7 inches (24.6 centimeters) diagonally. It comes with 16, 32 or 64 gigabytes of flash memory storage, and has Wi-Fi and Bluetooth connectivity built in.

Jobs said the device has a battery that lasts 10 hours and can sit for a month on standby without needing a charge.

Raven Zachary, a contributing analyst with a mobile research agency called The 451 Group, considered the iPad a laptop replacement, especially because Apple is also selling a dock with a built-in keyboard.