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Apple has unveiled a new iPad with a high definition screen.It said the resolution of the display was 2,048 by 1,536 pixels. The tablet is also powered by a new A5X chip with improved graphics performance.

Apple dominates the market but should face a fresh challenge later this year when tablets running the full Windows 8 system are expected to go on sale.

The new iPad – which is simply called by that name – also features a 5-megapixel camera sensor. It will be able to run on 4G LTE networks where the service is available and can act as a wi-fi hotspot for other devices if carriers allow the function.

It is 9.4mm deep, slightly thicker than the 8.8mm profile of the iPad 2. The basic 16GB model with only wi-fi will cost £399 and the top of the range 64GB model with wi-fi and 4G will cost £659.

It is due to go on sale on 16 March in the UK, US, Canada, Germany, France, Switzerland, Hong Kong, Singapore, Australia and Japan.

The previous model will stay on sale at a reduced price, starting at £329. Mr Schiller said that would make it more affordable for schools to buy the machine.

The firm also announced an upgraded TV box which can now handle 1080p video