The iPhone 5 will likely go on sale in the next few weeks, and it will work with 4G cellular networks. This is something Samsung's Galaxy S III and many other iPhone competitors already do.
Apple will also update its phone software with the iOS 6. It will ditch Google's map app for a homegrown one, since the two have become rivals as Google promotes phones running its Android operating system.
The new phone will be available for pre-order Sept. 14 and will ship on Sept. 21. The phone will cost $199 for 16GB, $299 for 32GB and $399 64GB with contract. The iOS 6 will be released Sept. 19.
Here are the iPhone 5 features outlined by Apple's senior vice president Philip Schiller:
- Battery has eight hours of talk time and eight hours of Web browsing.
- Phone is made entirely of glass and aluminum. The company calls it its thinnest and lightest model yet at 7.6 millimeters (.3 inch) thick and weighing 122 grams (4.3 ounces). It's 18-percent thinner than the iPhone 4S and 20 percent lighter. The phone also features a bigger screen, measuring 4 inches diagonally.
- Camera has an 8-megapixel camera (iSight) with special features to eliminate noise in images and perform better in low light. Camera also has backside illumination, hybrid IR filter, 5-element lens, f/2.4 aperture, faster photo capture, panorama feature.
- New dock and connector called Lightning - this means new phone will not be compatible with old accessories. Apple says accessory makers are already working to update their products.
- Phone will utilize new iOS 6 software, which features a new mapping app, as Apple ditches the Google Map app. The new software will have turn-by-turn voice navigation by none other than Siri.
- It will use LTE, and Sprint, Verizon and AT&T will support it in the U.S.
- Faster Wi-Fi and faster processing chip.
In addition to the iPhone 5, Apple also announced new iPods, including a redesigned iPod Nano and a new iPod Touch. However, the software giant did not discuss its smaller version of the iPad at the announcement. It was announced that Apple will hold another event in October to release the so-called iPad Mini.
ABC News contributed to this report.