Apple Unveils iPhone 5S And $99 iPhone 5C

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Apple Press Conference – iPhone 5C

For the first time ever, Apple unveiled two new iPhones on Tuesday, September 10, 2013, a traditional upgrade of its iPhone 5 as well as a simpler, cheaper version. (CNN)

NEW YORK (CNNMoney) — The way-faster iPhone 5S is here — and so is its lower-cost, colorful plastic cousin called the iPhone 5C.

Apple CEO Tim Cook unveiled the new flagship iPhone 5S, which is twice as fast as the iPhone 5, at an event at the company’s Cupertino, Calif., headquarters on Tuesday

The iPhone 5S will come in three colors: silver, gray and gold. The flagship device appears similar to the iPhone 5, but hardware upgrades include a beefed-up camera with a dual-LED flash to improve color balance. It also features Apple’s new A7 chip and a new M7 “co-processor” that measures motion data — a valuable feature for health and fitness apps.

The new device will go on sale Sept. 20 in nine countries, including the United States and China. The iPhone 5S will cost $199 for the 16-gigabyte version with a new two-year contract. The 32 GB and 64 GB versions will cost $299 and $399, respectively. Apple will begin taking pre-orders on Sept. 13.

The most futuristic iPhone 5S rumor proved to be true: The phone includes a fingerprint sensor that will replace passwords.

It’s a “key that you have everywhere you go,” Cook said.

“Touch ID” is built into the home button, and users can simply touch to unlock the phone. Users can also can scan their fingerprints instead of entering passwords for apps like iTunes.

Shares of Apple were down slightly in the middle of the presentation.

iPhone 5C: The flagship device wasn’t the only iPhone Apple revealed. A low-end plastic device called the 5C also made its debut.

“In the past, when we introduced a new iPhone we lowered the price of the old iPhone,” Cook said. “This year, we’re going to replace the iPhone 5.”

The iPhone 5C will be $99 for a 16 GB device on a two-year contract, or $199 for 32 GB. Its pre-order and ship dates are the same as the iPhone 5S.

Cook showed off photos of the new device, which comes in white, green, blue, red and yellow. The iPhone 5C features a polycarbonate shell, instead of the glass and aluminum body of the current iPhone 5. Its guts include Apple’s A6 chip and 8-megapixel camera, like the existing iPhone 5.

“The iPhone 5C is beautifully, unapologetically plastic,” Apple chief designer Jony Ive said in a video Apple played at the event.

Cook didn’t mention the target market early in his demo of the 5C, but at $549 without a contract, it doesn’t appear aimed at helping Apple expand its reach in new markets like China, as many assumed it would. Apple is holding a second launch event in Beijing on Wednesday.

iOS 7: Earlier, the event started with Cook highlighting Apple’s work on iOS 7, the new operating system that the company previewed in June. Cook also said Apple will ship its 700 millionth iOS device by the end of September.

Apple software chief Craig Federighi came out for a quick runthrough of iOS 7, which will roll out on most older versions of the iPhone on September 18.

Apple had already revealed most of iOS 7’s features at the company’s Worldwide Developers Conference. It’s a major design overhaul that Cook then called “the biggest software update ever.” IOS 7 includes a pastel color palette, much-improved multitasking ability, a better Siri voice assistant — which can now search tweets and Wikipedia — and an upgraded notifications system. The operating system also includes the new iTunes Radio, a competitor to services like Pandora.

Free iWork apps: After Federighi’s demo, Cook came back onstage to announce that Apple’s five iWork apps, including iPhoto and iMovie, will be free on new iOS devices.

What’s not expected this week: Apple will probably hold a separate event in October to focus on updated iPad and iPad Mini, as well as a revamped Apple TV. Other products supposedly in the works, including a smartwatch and an iTV, aren’t rumored to make an appearance on Tuesday either.

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