Steve Jobs, Fortune Magazine's CEO of the decade, unveiled the Apple iPad in a presentation heavy on hyperbole, calling the 10-inch device "magical and revolutionary". But, unlike Apple's iPod and iPhone - devices that had industry-shifting applications - the iPad has no immediately discernable core function. Part netbook computer, part smartphone, part e-reader, the iPad is something of a catch-all device, which some critics have dismissively labeled "an iPod Touch on steroids".

Tech commentators were quick to criticise the iPad's shortcomings, pointing to the lack of a camera, no support for Flash (which makes it impossible to view some web video), and the device's inability to make cellphone calls or multi-task between applications. But the iPad is intended primarily as an entertainment device and will fill the gap between task-orientated devices, such as a laptop and smartphone, with a far more user-friendly interface and easy-to-read display.

But, as with all things Apple, commentators are also quick to note that the company has a habit of creating new markets, which makes comparisons somewhat pointless. The real value of the iPad will be determined after it hits the market in March, with third-party application developers likely to drive adoption of the device with innovative new applications that will largely define how the iPad is used.

Major video game publishers such as Ubisoft and EA are already said to be developing games for the iPad, citing the device's large, full-colour screen as something that sets it apart from other mobile gaming platforms. The iPad is also likely to find traction as a portable entertainment device, with video playback and easy Internet browsing cited as its other major draw cards.

But the iPad's main application will be as an e-reader. Apple has already announced that its iBooks store will sell digital books from many of the world's top publishers, a move that will pit the iPad against Amazon's Kindle reader, and has analysts predicting massive growth in the e-book market.

At the moment, it is unclear whether Apple has nailed the e-reader market with the iPad in the way it did with music and the iPod but, as history indicates, one would be crazy to bet against Apple.