Apple has simultaneously released two new iPhones for the first time in its history as the company responds to an increasingly competitive global handset market.
At an event at Apple's California headquarters early on Wednesday morning (AEST), CEO Tim Cook unveiled an updated version of the iPhone 5 - called the 5S - and an unprecedented budget model - the 5C.
Both were widely anticipated by industry pundits following numerous leaks of parts and marketing material in recent months.
As expected, the 5S looks almost identical to the iPhone 5. The most notable innovations are a fingerprint-reading security sensor built into the home button and a 64-bit processing chip, meaning it works faster. Both are firsts in smartphone technology.
It is also the first iPhone to come in a 'champagne' colour in addition to the customary black and white, and Apple have boosted the camera, flash and battery slightly.
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The 5C, by contrast, signals a shift in Apple's smartphone strategy. It is essentially an iPhone 5 with a plastic shell, available in several colours - including blue, pink, yellow, white, and green.
But, crucially, at a knock-down price.
In the US, the 16GB version will cost $US99 ($A108) and the 32GB version $US199 with a two-year plan, but no other pricing information has been released.
It is seen as Apple's attempt to break into emerging markets like China, where higher-range models are too expensive for many.
Apple's failure to entice buyers in emerging markets is one reason the company now trails Korean giant Samsung in global smartphone sales.
Apple has traditionally sought to capture emerging markets with older iPhone models, which become cheaper when new models are released.
But that approach has failed, said Foad Fadaghi, an analyst at technology research firm Telsyte.
The older phones are viewed as inferior and second-hand. The 5C is all about "being relevant in China".
The new phones are indicative of a shift in Apple's strategy in the post-Steve Jobs era away from dazzling innovations and towards selling more products to more people, Fadaghi said.
"This is very much indicative of a new Apple that is focused on not losing out in markets, and returning value to its shareholders over and above innovating."
He doubted the 5C would have much impact in Australia, because phones are generally included in plans for free.
If anything, it may appeal to pre-paid customers who are after a cheaper phone, he said.
Apple have said that iPhone 5C pre-orders start on September 13. iPhone 5C and 5S will go on sale a week later in Australia, the US, Canada, China, France, Germany, Japan, Singapore and the UK.
The company also says its next mobile operating system, iOS 7, will be available as a free download on September 18.
Craig Federighi, head of software at Apple, said at the same event that "downloading iOS 7 is like getting an all new device."
The new system can be downloaded on the iPhone 4 and later models, as well as on tablets beginning with the iPad 2.
