It also revealed its Apple Pay system to turn the iPhone 6 into a credit card will launch on Monday.
The firm also unveiled a new iMac with the worlds highest resolution screen, and announced a new version of its Mac OS software, called Yosemite, will be made available for free today.
However, in an unusual gaffe, the firm leaked details of its two new iPads - the iPad mini 3 and iPad Air 2 - in an iOS 8.1 iPad user guide for iBooks on iTunes hours before the event.
'It's been an incredible year ... but we've got a few more things to share with you,' said Cook.
'The iPad is a simple and magical device, but while it has been beautifully simple on the outside, it has advanced technology jam packed on the inside,' he said.
'We have sold over 225 million iPads around the world,' Cook revealed, before announcing the iPad Air 2, which the firm claims is the world's thinnest tablet at 6.1mm thick.
It has a new chip, the A8X, 64-bit Processor - a new generation chip that is like the one in the iPhone 6 which is 40 per cent faster.
The gadget has a ten hour battery life, and a laminated screen with an anti-reflective coating, reduces reflections by 56 per cent.
It will cost $499 to $829 depending on features.
Apple also reduced the price of its original iPad Mini to $249, and introduced a new version with a Touch ID fingerprint sensor.
He also revealed Apple Pay, which allows iPhone 6 owners to pay using their handset simply by tapping it against a card reader.
'We think that it is going to be profound,' he said, before revealing the product will launch on Monday.
With Apple Pay, iPhone 6 and 6 Plus owners will be able to make payments at brick-and-mortar stores by holding their phone near a card reader.
Apple said shops like Macy's and Bloomingdales, drugstores including Walgreen's and Duane Reade, and other stores including McDonald's, Staples, Subway and Whole Foods are participating in Apple Pay.
The new iPhones have a wireless chip to transmit the information needed to complete the transaction.
Cook also said that the firm will release a developers kit for its watch next month, allowing developers to start building apps for it.
He also revealed the firm has sold 225 million iPads.
Culled From Daily Mail
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