Apple has introduced a new, thinner iPhone with a sharper screen, two cameras and video-chat features as analysts warn of stiffer competition from Google.
The device will go on sale in the United States and four other countries on 24 June, retailing at $US199 for the 16 gigabyte version, and $US299 for the 32-gigabyte handset.
The iPhone is now one of Apple's most important products, raking in more sales than the Macintosh computer last quarter, and accounting for 40% of Apple's revenue.
According to research firm Gartner, Apple's iPhone now has about 15% of the smartphone market, behind Blackberry and market-leader Symbian.
Google's Android operating system has about 10% followed by Microsoft's Window's mobile with about 7%.
Analysts says Google has been working with manufacturers such as Motorola to create appealing alternatives to the iPhone, with fewer contract restrictions than that imposed by Apple.
