New iPad Mini and Mac Pro laptop also unveiled.
Apple has revealed its latest devices to be released in the run up to Christmas.
Headlining Apple's product announcement was the new iPad Air. The tablet is thinner, light and more powerful than its predecessors.
In the same way Apple added the 'Air' suffix to its Mac Book Pros when it upgraded its range of laptops, the new iPad has had a lightweight upgrade. The 9.7in tablet is 7.5mm thick, making it 43% thinner than the previous model. Weighing just 1lb, it is the lightest full-sized tablet on the market.
The iPad Air will be available from November and will retail from £399 in UK for 16GB models.
The new tablet model also features Apple's A7 chip, which was first used in the iPhone 5S. The powerful processor makes the graphics 72% faster than the first iPad. It does not however; feature the fingerprint sensor used on the iPhone 5S.
The new iPad Mini has high resolution 7.9in Retina display an new A7 chip, starting at £319.
The new release from Apple comes as rival Android devices are on the rise and may overtake Apple iOS as the bestselling platform. Apple's iOS operating system accounted for 53.9% of all tablet shipped in 2012, according to Gartner.
It has been forecast that Android will become the market leader with a 49.6% share, versus Apple's 48.6% this year, with the gap expected to widen further in 2014.
However, Tim Cook, Apple CEO was optimistic about the new launch. He said the latest iPad is Apple's 'most advanced technology in a revolutionary and magical device.
'The iPad is one of the most successful products in Apple's history and in the whole industry. Earlier this month Apple sold its 170 millionth iPad.
He said: 'Now everybody seems to be making a tablet, even some of the doubters iPad is used more than any of the rest. iPad is used over four times more than all of those other tablets put together.'
The new 13inch Macbook Pro that was showcased at the launched has also been made lighter and thinner. The laptop has a new low power Intel Haswell chip to improve its graphics and battery life, which Apple claims is now 9 hours.
It will retail in the UK from £1099 in the UK, around £180 cheaper than the previous version.
Additionally, the new Mac Pro, designed for high-end users is the most powerful machine that Apple has even made with an Intel Xeon E5 processor, which is capable of driving three next-generation ultra HD monitors. It also has a motion sensor to illuminate the machine's ports when it is moved.
The Mac Pro will be available from December, retailing at £2,499 in the UK.
Apple's marketing manager Phil Schiller, said: 'The Mac Pro is no louder than a Mac Mini. We're really proud it's designed by an incredible team. There have been 2000 people spread across 20 states and it will be made in the U.S.'
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