"With twice the storage capacity and an unparalleled selection of over 300,000 native iPad apps, enterprises, educators and artists have even more reasons to use iPad for all their business and personal needs," said Apple senior vice president of marketing Philip Schiller in a statement.
Apple quoted several web application developers who said the additional memory capacity would allow businesses to better serve clients in conceptual design, music recordings and sports strategy.
Apple's move to expand its iPad following comes as the company faces tough questions from Wall Street over its growth prospects.
Company shares lost about 12% of their value last week after the company reported earnings that showed lower profit margins and smaller anticipated growth than expected.
The new iPad model will go on sale on February 5, with a suggested price of $799 for the iPad with Wi-Fi capacity and $929 for iPad with Wi-Fi and Cellular capacity.
Apple shares were 1.1% higher in early trading.