CEO Tim Cook took the stage in San Francisco, saying ‘Apple has never been stronger’ as the new handset was revealed.
It has a larger 4″ screen, along with a new dock connector and headphone design.
The phone will go on sale on September 21st, and will cost the same as the previous version, the 4S.
With a casing made from glass and aluminium, is it also the thinnest iPhone ever made, at just 7.6mm thick
It also contains an eight-megapixel camera which can take 28-megapixel panoramic shots.
iPhone 5 measures a mere 7.6 millimeters thin and weighs just 112 grams.1 That’s 18 percent thinner and 20 percent lighter than iPhone 4S.
The handset also has a new chip, the Apple A6, which is twice as fast as previous versions but 22% smaller.
The iPhone is expected to become the biggest selling in Apple’s history, with an estimated 8m set to be sold as Apple fights increasing competition from Google’s Android software and Microsoft’s Windows Phone.
Apple boasted the new handset has eight hours of 3G talk time, and a 225 hour standby time.
It also has an eight megapixel camera with a 3264×2448 sensor, and has improved its performance in low light, and a lens made from sapphire crystal.
The handset also now has a panorama mode to create wide shots. ‘The ocean looks bluer, kids look happier,’ joked Phil Schiller, Apple’s vice president of marketing.
Schiller also confirmed the handset has a controversial new connector.
‘The iPhone from its start used the 30 pin connector, and it has served us well. A lot has changed and it is time for the connector to evolve – and out new connector is called Lightning.’
Apple also showed off a connector allowing people to use their existing chargers and accessories.
The handset will use iOS 6, and dumps Google’s maps for Apple’s own.
‘We use a cinematic camera angle to fly you around corners.’
The firm also showed off a 3D flyover feature allowing people to virtually fly over an area, and showed off the software ‘flying’ over Big Ben in London.
A new app called Passbook also allows people to collect store cards, tickets and other information in a single app.
It can be used to show boarding passes on planes and for entry to concerts and sports games that support the codes.
Users can also share photo albums easily, and Apple’s speech recognition software Siri has been updated to give people sports scores, and even book restaurants.
Facebook has also been integrated into the service, allowing people to update their status via speech.
Sir Jonathan Ive, the man who designed the new phone, said: ‘When you think about your iPhone, it is the product you have with you all the time – we take changing it really seriously.
‘We want to make a much better phone.
‘What makes iPhone 5 so unique if how it feels in your hand.’
Apple also gave a glimpse of the manufacturing behind the iPhone.
‘We use crystalline diamond to polish the handset,’ revealed Sir Jonathan.
‘The variance between products we measure in microns’
The handset will cost the same price as the iPhone 4S, $199 to $399 depending on size.
It will begin shipping on September 21st in US, Canada and several other countries, and customers can pre-order from this Friday.