Apple today replaced its iPad 2 tablet with the new, more powerful iPad with Retina display.

Apple also released a new, less-expensive version of the iPhone 5C for select international markets.

The iPad with Retina is a fourth generation model and will now take over as the company's most affordable 9.7-inch screen tablet with a $399 price tag for the Wi-Fi-only model with 16GB of memory. This is the same price point the iPad 2 was at, which will now disappear from the market.

The step-up tablet offering adds LTE cellular capability and is priced at $529. Both models are now available.

Other features common to both models are the Apple-designed A6X processor, a 5-megapixel iSight camera that can capture 1080p HD video, a separate FaceTime HD camera and each runs on iOS 7. The higher-end model supports all carriers worldwide and the tablet is expected to have 10-hours of battery life.

Apple also has its Smart Cover and Smart Case accessories available for suggested retail prices of $39 and $49, respectively.

"Now for $399 customers can get iPad with a stunning 9.7-inch Retina display, fast A6X chip, and 5MP iSight camera, offering a dramatic upgrade in power, performance and value compared to the iPad 2 it replaces," said Philip Schiller, Apple's senior vice president of Worldwide Marketing. "The iPad line sets the gold-standard in mobile computing and all iPads have access to the largest and best ecosystem of more than 500,000 iPad optimized apps from the App Store."

The iPad with Retina joins the iPad mini with Retina display, iPad mini and iPad Air.

Apple has had little trouble selling iPads with the company reporting at the end of January it had shipped 26 million iPads worldwide during the previous three-month period, an all time record, and up from the 22.9 million sold during the same period in 2012.

During the same time frame is sold 51 million iPhones, up from 47.8 million the prior year.

Despite pumping out this huge number, Apple must be worried about the influx of powerful and inexpensive Android smartphones as it decided to bring out an even more entry-level phone.

The new iPhone 5C offers to customers an 8GB option, in addition to the 16GB and 32GB already on the market. It is expected to be available in the UK, France, Germany, Australia and China for about  £429 or about  £40 less than the 16GB model

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