The biggest addition to the Pencil, aside from the new magnetic charging feature, is a double-tap gesture — a finger tap on the pencil itself while you hold it — that can do different things depending on the app. In Notes, for example, a double-tap changes the tool. In Photoshop for iPad, a double-tap zooms in or out of the image. Taps are customizable, though, for better personalization. Tap a locked iPad with the pencil, and it wakes up the device and opens right up into the Notes app.
There are no connectors or moving parts now, just the simple pencil itself. Apple also offers engraving through the Apple Store, to personalize it further (helpful for telling Pencils apart in a design studio).
Like the previous pencil, it works with no perceptible lag, is pressure sensitive for drawing and sketching, and is aware of tilt for shading.
The second-generation pencil is available for $129 with free engraving, and is compatible with the new 11-inch and 12.9-inch iPad Pro models. The first-generation pencil sticks around for $99, for owners of older, compatible iPads. (iPad Pro 12.9-inch 1st and 2nd generations, iPad Pro 10.5-inch, iPad Pro 9.7-inch, and the 6th generation iPad)