Apple unveiled the iPhone 5 tonight, claiming it is "an absolute jewel" and unlike any phone ever made.
Senior vice president of worldwide marketing Phil Schiller said the phone, which weighs 112 grammes and has a 4in screen, was "thinner, lighter and smaller".
Speaking at a launch event in California, he added that the phone's "console quality graphics" did not affect the battery which had a longer life than the previous 4S model.
The phone's camera has a sapphire crystal lens cover to protect it and a panorama option which allows the user to take a panoramic picture.
Mr Schiller joked: "The world is just a more beautiful place when you use an iPhone 5".
The audience was told the phone's map function had been updated so it now used 3D maps and spoken word directions to thousands of destinations.
They were also shown a fly-over option which allows users to get an aerial view of streets around the world.
Scott Forstall, the senior vice president of iOS Software, introduced a series of updates including a shared photostream which allows people to share their pictures more easily.
The voice control software Siri has also been updated so people can ask it to recommend films and restaurants and update their Facebook accounts verbally.
The phone will be available in white and black.
