The introduction of the iPhone 5C marks Apple's first departure from high-end devices.
Here is a look at the cheaper model.
* The 5C comes in five vivid colours - blue, green, pink, yellow and white.
* It is modelled on the iPhone 5 and features a four-inch retina display and an eight megapixel camera
* It is equipped with a new FaceTime HD camera and the iOS 7 operating system, dubbed "the most significant iOS update since the original iPhone"
* The polycarbonate body comes with a steel reinforced frame
* The 4.9in (124.4 mm) phone is 2.33in thick (59.2 mm) and weighs 4.65oz (132 grammes)
* Apple has said the phone is compatible with more 4G bands than any other smartphone in the world
* The handset delivers 10 hours of talk time on 3G networks; up to 10 hours of web browsing on Wi-Fi and 4G networks and up to eight hours on 3G; up to 10 hours of video playback and up to 40 hours of audio playback.
* iPhone 5C will be available in the UK for a suggested retail price of £469 for the 16GB model and £549 for the 32GB model.