"In the past, when we've launched a new iPhone, we lowered the cost of the old iPhone, making it more accessible to new people. But this year, we're not going to do that," Tim Cook said Tuesday.
"The business has become so large that this year we're going to replace the iPhone 5, and we're going to replace it with not one but two new designs," he said before introducing Phil Schiller to the stage.
First up, the iPhone 5C.
"The iPhone 5C is made with all the incredible technology that customers have loved with the iPhone 5, but there's more, too," Schiller said. "It has an incredible new design. One that's more fun, and more colorful than anything we've made before."
As expected, some of the color options we all expected are there: Blue, white, pink, yellow and green.
"A few of you have maybe seen a few shots of this on the web, and that's cool, because everyone's really excited," Schiller said, prompting some chuckles from the live crowd.
Describing how the wallpaper in iOS 7 matches the color of the phone, Schiller says "it creates an entire experience of color."
Getting down to the nuts and bolts, Apple says the new iPhone 5C is made of hard-coated polycarbonate. "Inside it's built with a new construction method that uses a reinforced steel structure," Schiller adds.
There's a 4-inch retina display, integrated touch, full sRGB, widescreen video, 8MP iSight camera, BSI, impressive battery life, hybrid IR filter and 5-element lens, all powered by A6.
The pricing comes in at 16GB for $99 and 32GB for $199 (with a 2-year contract, of course). New cases are sold separately and are priced at $29 each.
"iPhone 5C is beautifully, unapologetically plastic," Schiller said.
Sources: Apple, CNET