Apple takes the wraps off cheaper,multi-hued $99 iPhone 5C

The move comes as rival phones from Samsung and other manufacturers are challenging Apple’s hold on the smartphone market.

The iPhone 5C will be available in five colours — green,blue,yellow,pink and white. Cook calls it “more fun and colourful” than any other iPhone. The 5C has a 4-inch 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 areas where people don’t have as much money to spend on new gadgets as they do in the US and Europe.

The second phone,the 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 run a new chip,the A7 that is up to twice as fast as the A6.

The camera in the 5S received some major upgrades,including several automatic features designed to produce better photos. It has larger pixels,which helps capture more light. The phone also has a two-tone flash feature that is designed not to clash with the colours in the room or a person’s skin colour,something Schiller said has not been done on a phone before. The camera,called iSight,has “auto image stabilisation,” which helps avoid blurry pictures,and a slow-motion camera for video.

The 5S also includes “Touch ID,” which reads fingerprints at a “detailed level,” Schiller said.

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