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

Still, tablet computers have existed for a decade with little success. Jobs acknowledged Apple will have to work to convince consumers who already have smart phones and laptops that they need the iPad.

"In order to really create a new category of devices, those devices are going to have to be far better at doing some key tasks," Jobs said. "We think we've got the goods. We think we've done it."

Applications designed for the iPhone can run on the iPad. Apple is also releasing updated tools for software developers to help them build iPhone and iPad programs.

"We think it's going to be a whole 'nother gold rush for developers as they build applications for the iPad," said Scott Forstall, an iPhone software executive.

The basic iPad models will cost US$499, US$599 and US$699, depending on the storage size, when it comes out worldwide in March.