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Handheld Devices

Apple unveils iPhone 5C, a new, low-cost iPhone

Apple will launch a completely new iPhone intended to expand its reach into new markets that can't afford the existing iPhone.

The iPhone 5C will come in five colors -- blue, pink, white, yellow and green -- and will cost $99 on a two-year contract for a 16GB version. A second model with 32GB of memory will cost $199 in the U.S., said Phil Schiller, senior vice president of worldwide marketing at Apple, at a news conference on Tuesday.

It has a 4-inch screen, will run on Apple's A6 processor and the new iOS7 operating system. It will have an 8-megapixel camera, an HD front-facing camera for video chat, and support "more LTE bands than any other smartphone in the world," the company said.

One of the biggest changes users will notice is the new case, which is in plastic rather than the metal used on recent models of the iPhone.

Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is martyn_williams@idg.com

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