iPad Pro

As expected, Apple is making a bigger, faster iPad. The iPad Pro is 12.9 inches. It's the same height as the iPad Air, so you can run iPad Air apps side by side. The screen has 5.6 million pixels -- more than a 15-inch MacBook Pro with a Retina display.

The iPad Pro starts at $799.

Inside it's much faster. The iPad Pro has a new A9X 64-bit chip. It's 1.8 times faster than the previous iPad's CPU ("desktop class" according to Apple executive Phil Schiller). It is powerful enough to edit three streams of 4K video at a time. It has a 10-hour battery life, is super thin and weighs just over 1.5 pounds.

"Why make an iPad with a bigger display?" asked Schiller. Good question!

Games and movies look better on a bigger screen, he said. It's big enough to have a full-size keyboard on the screen. If you don't want to type on the screen, Apple has made a new smart keyboard that doubles as a cover, Microsoft (MSFT, Tech30) Surface-style. The keyboard is coated with a thin fabric.

The company is also making its own stylus, but with the usual over-the-top design and marketing. Yes, it's the Apple Pencil, a low latency stylus that feels like a real pencil. It even got its own Jony Ive narrated videos. It "feels like a true writing or drawing instrument," said Ive.

As the name implies, the iPad Pro's real target audience is business users. To show that it's serious, Apple brought out a very unexpected partner to demo the iPad Pro: Microsoft's Kirk Konenigsbauer. He demonstrated Microsoft Office for iPad Pro using the Apple Pencil.

Adobe (ADBE) also demoed its iPad Pro apps including a new product called Photoshop Fix, a retouching tool. Using the iPad Pro and new stylus, Adobe's Eric Snowden did some realtime edits including the odd choice of changing a photo of a model to make her smile more. (It was the first woman on stage during the presentation.)

For the final demo, Irene Walsh from 3D4Medical showed off her startup's 3D medical app that shows 3D interactive anatomy images for medical students and patients.

The company also announced a new iPad Mini 4.