(CBS News) Apple announced the iPhone 5 Wednesday at the Yerba Buena Center in San Francisco. Rumors leading up to the highly anticipated smartphone were at fever pitch.
Apple chief executive officer Tim Cook started off the event saying, "We've got some really cool stuff to show you." Cook continued by giving updates on Apple Stores, MacBooks, OS X Mountain Lion and iPads.
Apple senior vice president Phil Shiller took the stage to introduce the iPhone 5.
"It's an absolute jewel," Shiller said. For the most part, the iPhone 5 looks like previous models, but taller and thinner.
The phone has a 4-inch 1,136 x 640 pixel display, 4G LTE connectivity, A6 chip and weighs 112 grams - 18 percent thinner and 20 percent lighter than iPhone 4S.
Watch the evolution of the iPhone over the years to the iPhone 5
The larger display allows for widescreen display. Apps designed for the previous operating system will not be stretched, but will have black borders.
One of the biggest updates is to the camera and iSight. The camera now has an 8-megapixel sensor, 3,264 x 2,448 pixel resolution with backside illumination, hybrid IR filter, a five-element lens with f2.4 aperture and is 25 percent smaller and can take panoramic photos.
The video camera captures 1080p HD quality. A front-facing camera features 720p support, a backside illuminated sensor, and FaceTime works over 3G with iOS 6.
The iPhone 5 will also get a new dock connector called Lightning, which is 80 percent smaller. The new dock will have an adaptive interface, improved durability and is reversible. Apple will also release an adaptor to make the transition.
The iPhone 5 will be available in white or black and will retail for $199 for a 16GB model, $299 for a 32GB model and $399 for a 64GB model. Pre-orders start Sept. 14 and the phone will be in stores on Sept. 21 in the U.S, Canada, U.K. France, Germany, Australia, Japan, Hong Kong and Singapore. More countries will see the iPhone 5 on Sept. 28.
The iPhone 4 will now be free with a two-year contract and the iPhone 4S will drop to $99.