At the heart of the iPad 2 is a 1GHz dual-core Apple A5 processor, which should provide a boost over the 1GHz single-core Apple A4 in the first iPad. Apple says the A5 is two times faster than the previous processor, while graphics performance is nine times faster--welcome news for everything from games to video-editing apps like the soon-to-be-released .

"The graphics on this thing are wonderful," said Apple CEO Steve Jobs, who made a at the Wednesday event despite being on medical leave.

The A5 also has a similar low-power consumption rating as the A4. Like the original iPad, the new model promises 10 hours of battery life.

The iPad 2 features two built-in cameras, for use with video chat and other apps. FaceTime can be used between two iPad 2s, between the iPad 2 and an iPhone or iPod touch, or between an iPad 2 and a Mac using . As with FaceTime on other iOS devices, you'll be able to use the front-facing camera to capture your own image; you can switch to the rear-facing camera during conversations to show chat participants what you're looking at without having to flip around your iPad.

Apple also announced a new for the iPad. The app uses the front-facing camera to snap your image, which you can then alter with eight included effects. The Photo Booth app previews all effects on one-screen in real-time.