The iPhone 5 was dramatically unveiled by Apple as it rose from the floor of the stage Wednesday, revealing the same pricing as the iPhone 4 but with added features that surpass the previous version.
Engadget, a technology web magazine, had a live stream of the event with photos and tweets.
"It's the world's thinnest smartphone," Phil Schiller, Apple's senior vice president of worldwide marketing, said during the unveiling. "It is made entirely of glass and aluminum. It's designed and built to an exacting level of standard unlike anything we, or anyone in our industry, have made before."
It is 20 percent lighter than its predecessor, the 4S.
The iPhone 5 will be sold at $199 for 16 GB, $299 for 32 GB and $399 for 64 GB.
The iPhone 4 is now free on contract and costs $99.
Pre-orders begin Friday, with shipping on Sept. 21 in the U.S. and eight other countries.
Apple is also updating the phone's software and using its own mapping services versus the Google services that were used previously.
For those who don't want to buy the new iPhone, the new iOS 6 software is a free upgrade for iPhones released since 2009 - the 3GS, 4 and 4S models. In addition to the phone, the software will be available on the 2011 and 2012 iPad models and the newer iPod Touch.
Schiller went over many aspects of the new phone, including battery life, the camera, panorama and applications.
Users can expect about eight hours of 3G or LTE talk time or browsing battery life and about 10 hours on WiFi browsing. Sprint, AT&T and Verizon will all support LTE.
The panorama function is on the new phone, enabling users to have a different kind of photo experience.
"You sweep the scene vertically to get the most resolution, then just swing your phone," Schiller said. "Even if you weave or shake a bit it'll smooth things out and remove any crazy artifacts if someone moves."
The camera is the same as the iPhone 4S but thinner.
The phone also comes with three microphones - front, bottom and back.
Although the unveiling of the iPhone 5 was the focus of the announcement, Apple executives discussed Mac notebooks, iPads and iTunes.
"Our notebooks now rank number one in the U.S. in market share in the last three months," Apple CEO Tim Cook said.
This marks six years of out-pacing the PC industry.
"We're happy with how we're doing with the Macintosh," Cook said.
The iPad has also seen increased numbers, especially with it being 91 percent of all tablet web traffic.
"I don't know what these other tablets are doing," Cook said. "They must be in warehouses or store shelves or maybe in peoples' bottom drawer."
Many of the Fortune 500 companies are testing the iPad and looking into custom apps, Cook said.
The Foo Fighters closed the afternoon unveiling ceremony with those in the crowd capturing photos and video with their iPhones.
"I hope you guys are as excited as we are," Cook said.
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