The profile of the Apple iPad 2 is shown during its launch event in San Francisco, California March 2, 2011. [Photo/Agencies]

The new system, iOS 4.3, includes support for FaceTime, Apple's video-chat program. The company said people can now hold conversations between iPads, iPhones and Mac computers.

The update turns iPhones and iPads with 3G cellular connections into personal Wi-Fi hotspots, so you can share the connection with computers or other devices, if your wireless carrier allows it. Many charge additional fees for this service.

The improved software also makes Apple's Safari Web browser run faster.

Apple also announced new software designed for the iPad, including a $4.99 version of iMovie for video editing and a $4.99 version of GarageBand, its music recording and editing software. GarageBand includes instruments that can be played by touching the iPad 2's screen, and it can even sense whether you're tapping quietly or banging on the "keys." People can start a project on their Mac, then work on it later on the iPad 2.

Jobs gave an update on the company's iBook business, saying people downloaded more than 100 million books since the e-book business launched last year. He also said Random House became the last major publisher to agree to sell its titles in the iBookstore.

Jobs announced in January that he would take a third leave of absence to focus on his health. In the last decade, Jobs, 56, has survived a rare but curable form of pancreatic cancer and undergone a liver transplant.

Chief Operating Officer Tim Cook has been running day-to-day operations.

In 2009, Jobs said in advance that he would take a six-month medical leave; this time, the company did not specify when he would return. The last time Jobs went on medical leave, marketing chief Phil Schiller was the main presenter at product launch events.

Shares of Apple, which is based in Cupertino, California, rose $1.66, or 0.5 percent, to $350.97 in afternoon trading Wednesday.

Apple Inc. CEO Steve Jobs introduces the iPad 2 on stage during an Apple event in San Francisco, California March 2, 2011. [Photo/Agencies]