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Apple Unveils New iPhones; Customers Already Lining Up At Manhattan Store

New Models To Come In More Colors
Apple Senior Vice President of Worldwide Marketing Phil Schiller speaks about the new iPhone 5C during an Apple product announcement at the Apple campus on September 10, 2013 in Cupertino, California.  (Photo by Justin Sullivan/Getty Images)

Apple Senior Vice President of Worldwide Marketing Phil Schiller speaks about the new iPhone 5C during an Apple product announcement at the Apple campus on September 10, 2013 in Cupertino, California. (Photo by Justin Sullivan/Getty Images)

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NEW YORK (CBSNewYork/AP) — Apple’s latest iPhones will come in a bevy of colors and two distinct designs, one made of plastic and the other that aims to be “the gold standard of smartphones” and reads your fingerprint.

Apple unveiled the latest iPhone models — the 5S and 5C — during an event at its California headquarters on Tuesday. The move comes as rival phones from Samsung and other manufacturers are challenging Apple in the competitive smartphone market.

Even before the big announcement, people were already lining up at the 24-hour Apple store on Fifth Avenue to secure their spot in the line to get the new gadgets when they go on sale Sept. 20.

“I just like the experience more than anything, you get to meet new people,” said a Brooklyn man who has been standing outside the store since last Thursday.

John Murphy, who works for an Ohio company that buys and sells used Apple products, is also waiting for the devices to hit stores so he could make some money and also buy himself a new phone.

The iPhone 5C will be available in five colors — green, blue, yellow, pink and white. CEO Tim Cook calls the 5C “more fun and colorful” than any other iPhone. The 5C has a 4-inch Retina display and is powered by Apple’s A6 chip. It also has an 8 megapixel camera, live photo filters and a rear cover that lights up.

The iPhone 5C will cost $99 for a 16 gigabyte model and $199 for a 32 gigabyte model with a two-year wireless contract. The phone is expected to help Apple boost sales in China and other regions where people don’t have as much disposable income to spend on new gadgets compared with the U.S. and Europe.

The second phone, the iPhone 5S, is “the most forward-looking phone we have ever created,” said Phil Schiller, senior vice president of worldwide marketing at Apple. It will come in silver, gold and “space gray” and will run on a new chip, the A7, which is up to twice as fast as the A6.

Apple Senior Vice President of Worldwide Marketing Phil Schiller speaks about the new iPhone 5S during an Apple product announcement at the Apple campus on September 10, 2013 in Cupertino, California. The 5S comes in three colors and contains an A7 chip.  (Photo by Justin Sullivan/Getty Images)

Apple Senior Vice President of Worldwide Marketing Phil Schiller speaks about the new iPhone 5S during an announcement at the Apple campus on September 10, 2013 in Cupertino, California. The 5S comes in three colors. (Photo by Justin Sullivan/Getty Images)

Schiller said the new phone can run more health and fitness applications. These apps have become increasingly popular as more people use them to track exercise routines, calorie intake and even sleep patterns.

The camera in the 5S received some major upgrades, including several automatic features designed to produce better photos. It has larger pixels, which helps capture more light. The phone also has a two-tone flash feature that is designed not to clash with the colors in the room or a person’s skin color — something Schiller said has not been done on a phone before.

The camera, called iSight, has “auto image stabilization,” which helps avoid blurry pictures, and a slow-motion camera for video.

The 5S also includes “Touch ID,” which reads fingerprints at a “detailed level,” Schiller said. He said it is “fun and easy” to teach the 5S about your fingerprint and once you do, you can just touch the home button to unlock the phone.

Tying the fingerprint scanner to payments could also open new revenue channels for Apple.

Apple also said that its next mobile operating system, iOS 7, will be available as a free download on Sept 18.

Craig Federighi, head of software at Apple Inc., said at an event at the company’s Cupertino, Calif., headquarters that “downloading iOS 7 is like getting an all new device.”

The new system can be downloaded and installed on the iPhone 4 and later models, as well as on the tablets beginning with the iPad 2.

Apple also says it expects to ship its 700 millionth iOS device next month. Apple CEO Tim Cook predicts that iOS 7 will become the most popular mobile operating system in the world.

Investors seemed unimpressed with Apple’s latest gadgets. The company’s stock price fell $3.17 to $503.10 during the event.

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(TM and © Copyright 2013 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2013 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)