Apple Debuts Upgraded iPhone 5S, Lower Cost 5C

iPhone 5c Product Shot - H 2013

iPhone 5c Product Shot - H 2013

The tech giant looks to expand sales in China and emerging markets with its new cheaper multicolored plastic-backed phone.

Apple introduced the upgraded iPhone 5S and the budget iPhone 5C at an event at its company headquarters in Cupertino, Calif. 

The company also showed off the final version iOS 7, the latest iteration of its mobile operating system. 

The flagship iPhone 5S looks very similar to the existing iPhone 5 with two noticeable exterior differences: dual camera flashes on the back and a redesigned home button on the front that houses a fingerprint sensor to lock and unlock the phone. The fingerprint sensor can also be used to authorize iTunes and app store purchases. 

Internally, the iPhone 5S features the new A7 chip, which is 40 times faster than the chip in the original iPhone and 50 percent faster than the previous generation A6. It also includes a new motion co-processor called the M7 that measures motion data continuously with accelerometer, gyroscope and compass support to power a whole new generation of fitness apps. 

The upgraded camera features an F2.2 aperture, larger sensor and image stabilization to go along with the dual "true tone" LED flash to produce the best pictures ever taken on an iPhone. It will also record 720p video at 120 frames per second (allowing for super-cool slow-motion shots).

The 5S offers 10 hours of talk or web browsing and 250 hours of standby on a single battery.

In addition, Apple tweaked the colors, offering silver, gold and space grey to replace the familiar black and white models. 

The iPhone 5S is priced at $199 for 16GB of storage, $299 for 32GB and $399 for 64GB, with a two-year contract.

The 5C's outer plastic casing (technically a hard-coated polycarbonate shell around a reinforced steel structure) comes in five colors: red, green, blue, white and yellow. Internally, it features basically the same specs as last year's iPhone 5. 

The 5C will be priced at $99 for a 16GB phone and $199 for a 32GB model with a two-year contract -- the same price as the iPhone 4S. 

Apple did not reveal international pricing for the iPhone 5C, but the off-contract price in the U.S. is $549 for 16GB (and $649 for the 16GB 5S). Those prices suggest the phone will retail internationally -- where customers generally pay full price for a phone rather than have the cost subsidized by a contract -- for more than the $400-$500 many analysts believed would drive sales outside the U.S. Apple is looking to grow its market share in China, India, Eastern Europe and other emerging markets with the new lower-cost model.

The new iPhone will be available in China and Japan on the same day as the U.S. (Sept. 20) -- the first time China will see a simultaneous release with the U.S. Japan's largest carrier, NTT DoCoMo (62 million customers), will be carrying the iPhone for the first time.

Apple CEO Tim Cook likened the top-to-bottom reworking of iOS 7 to "getting an all-new phone you already know how to use."

iOS 7 includes a new lock screen, male SIRI voice, fresh ringtones and updated apps. It also includes iTunes Radio, a streaming music service that Apple designed to compete with Pandora and Spotify.

Both phones go on sale on Sept. 20. The iPhone 5C will will be available for preorder on Sept. 13.

See pictures of the new iPhones below.