Apple replaces iPhone 5 with iPhone 5S and iPhone 5C

NEW DELHI: In a surprise move, Apple on Tuesday replaced the iPhone 5 with two new smartphones the iPhone 5S and iPhone 5C. This replacement in effect means that Apple will not produce iPhone 5 anymore, and will sell only the stock that is already available with retailers in the market.

The company will however, continue with its iPhone 4S model, which will be available for free in its 8GB version. The company's US website now sports only three iPhone models for consumer comparison, the iPhone 4S, 5C and 5S. Apple had launched iPhone 5 last year.

"The business has become so large that this year we are going to replace the iPhone 5 and we are going to replace it with two new designs," Apple chief Tim Cook announced at the company's Silicon Valley headquarters.

Apple's latest iPhones will come in a bevy of colors and two distinct designs, one made of plastic and the other that aims to be "the gold standard of smartphones." The move comes as rival phones from Samsung and other manufacturers are challenging Apple in the competitive smartphone market.

The iPhone 5C will be available in five colors - green, blue, yellow, pink and white. CEO Tim Cook calls the 5C "more fun and colorful" than any other iPhone. The 5C has a 4-inch (10-centimeter) Retina display and is powered by Apple's A6 chip. It also has an 8 megapixel camera, live photo filters and a rear cover that lights up.

The iPhone 5C will cost $99 for a 16 gigabyte model and $199 for a 32 gigabyte model with a two-year wireless contract. The phone is expected to help Apple boost sales in China and other regions where people don't have as much disposable income to spend on new gadgets compared with the U.S. and Europe.

The second phone, the iPhone 5S, is "the most forward-looking phone we have ever created," said Phil Schiller, senior vice president of worldwide marketing at Apple. It will come in silver, gold and "space gray" and will run on a new chip, the A7, which is up to twice as fast as the A6.

The latest smartphone from Apple has a Touch ID system. A security feature, the sensor which has been built right into the home button scans the user's sub-epidermal skin layers.

"The ring around the home button is just a detection ring which turns on the Touch ID sensor," said Apple. "The home button is sapphire so it won't scratch. It can handle multiple fingerprints too," Apple added.

Apple also said that its next mobile operating system, iOS 7, will be available as a free download on Sept 18.

Craig Federighi, head of software at Apple Inc., said that "downloading iOS 7 is like getting an all new device."

The new system can be downloaded and installed on the iPhone 4 and later models, as well as on the tablets beginning with the iPad 2.