Apple unveiled its first budget iPhone yesterday as it introduced two new devices to its range.
The new 5C was billed as a handset that will be "more fun and more colourful" than any iPhone yet at a much-hyped event at Apple's California headquarters.
Chief executive Tim Cook promised the gadget would come with "all the great technology customers have loved with the iPhone 5".
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The mobile will come in five colours - blue, white, pink, yellow, and green - and will be priced at $99 (£63) if taken out on a two-year contract. The cheaper version of the iPhone will be an obvious rival to some of the low-cost gadgets sold by competitors.
Mr Cook also introduced new flagship mobile, the iPhone 5S, "the most forward-thinking phone we have ever created".
Dubbed the "gold standard in smartphones" by the tech giant, it will come in the more traditional Apple colours as well as a new golden hue.
Its unveiling comes after a series of images leaked online claimed to show the 5S, while the industry was awash with rumours relating to the 5C. Mr Cook raised a laugh as he told the audience: "A couple of you may have been expecting this."
Apple's Philip Schiller raised a massive round of applause as he introduced the fingertip scanner -named Touch ID - which, he said, would provide a "simple and secure way to unlock your phone with just a touch of your finger."
The security feature is built into the home button.
Beyond unlocking the phone, the feature can be used as a secure way to approve purchases from the iTunes Store, App Store or iBooks Store, Apple said.
The 5S will cost from £549.