I think if we did nothing, maybe a little bit. Probably not so much, because most of

these tablets aren't even catching up with the first iPad.

But we haven't been resting on our laurels. Because in less than a year we're going to

introduce today,  iPad 2, the second-generation iPad.

So, what is iPad 2? What have we learned? What can we improve?

Well, it is an all-new design. It is not a tweak design, it's not got marginal improvements,

it's a completely new design. And the first thing is, it's dramatically faster.

We have a new chip we call A5.  Our chip wizards have come up with this, and it's great.

It is dual-core processors; two processors inside, and so, we get up to twice as fast

on CPU performance.

But we've really gone all-out on the graphics performance, up to nine times faster graphics.

The graphics on this thing are wonderful.

Same low power as A4. We don't want to give up any of that legendary battery life? And

even though others are starting to ship, I think that this is gonna be the first dual

4 tablets to ship in volume.

So A5 is really quite an achievement, and is going to give us something that's up to

twice as fast on PC performance, up to nine times faster on graphics and the first iPad

was no slouch. So, alot faster with a thought.

Second, we built in some cameras. The video. We've got a rear camera out the back, and

we've got a front-facing camera out the front. We'll talk more about that in a few minutes.

We've also built in the Gyroscope that we have in the iPhone and the iPod Touch.

Now, having built in all of this stuff, one of the most startling things about the iPad

2 is it is dramatically thinner. Not a little bit thinner, a third thinner. 33% thinner.

That's what it looks like.

So if you look at the numbers, when you look at the numbers gone from 13.4 millimeters,

down to 8.8 millimeters thick. It's dramatic.

And for those of you that have iPhone 4s, the new iPad 2 is actually thinner than your

iPhone 4. So we're incredibly happy with this. And when you put your hands on one, it feels

totally different. And all these other tablets are coming out, most of them even thicker

than the the original iPad, nothing even approaching this.

In addition to thicker, it's lighter as well. Going from 1.5 pounds down to 1.3. And you

might not think that's a lot, but when you get down to 1.5 pounds, a tenth of a pound

is a lot. And it feels quite a bit lighter. And it's got an all new design, it's just

beautiful.

So this is what it looks like.  It's really thin,  and it comes in two colors,

black and white. We're going to be shipping in white from day one.

And to give you some scale, this is what it looks like. Again, you can just pick this

thing up, it almost floats. Black and white, black or white here. Now, in addition to having

both colors, we also have models that work with both AT&T and Verizon's 3G networking

from day one. So we support both AT&T and Verizon.

Now here we are