Apple said the iPad Mini weighs only 0.68 pounds, compared to 1.46 pounds for the full-sized iPad, and is only 7.2 millimetres thick, versus 9.4 millimetres.
At £529, the top-of-the-range version has 64GB of storage and superfast mobile broadband technology, compatible with Britain's first network, due to be introduced next week. It costs only £130 less than the top full-sized iPad, however, despite lacking the latter's high definition "Retina" screen.
The apparently high price meant the new Apple device, which will go on sale next month, received a relatively cool reception on Tuesday night. Markets also appeared underwhelmed, with shares in Apple sinking in late afternoon trading after the device's launch. The shares were down almost 3 per cent at one point, wiping as much as $17bn (£10.6bn) off the value of the tech giant.
"The iPad mini looks like it will probably be a great product, but at £70 more than the Google Nexus 7 and £110 more than the Amazon Kindle Fire, I'm not sure it's worth the extra money for the use you'll get out of it," said Jason Jenkins, editor of the technology website CNet UK.
Apple also annoyed some customers by updating the full-sized iPad with a new processor and dock connector that is incompatible with most accessories currently available.
The previous, third generation, full-sized iPad was unveiled only six months ago, with many customers signing up to mobile network contracts lasting two years. Apple's surprise announcement means their gadget has already been superseded, however.
The firm also introduced a new version of its iMac desktop computer only 5 millimetres thick at the edge, achieved partly by removing the DVD drive. Mr Schiller said people who still use DVDs in their computer were "stuck in the past".
Apple also updated its Macbook laptop range with a 13-inch "Retina" display version and improved the performance of its small Mac mini range.
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