Apple introduces iPhone 5C

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 during an event at its Cupertino, Calif., headquarters. The move comes as rival phones from Samsung and other manufacturers are challenging Apple's hold on the smartphone market.

The iPhone 5C will be available in five colors - green, blue, yellow, pink and white. CEO Tim Cook calls it "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 areas where people don't have as much money to spend on new gadgets as they do in the U.S. and Europe.
Tying the fingerprint scanner to payments could also open new revenue channels for Apple.
Apple also said 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 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. Apple's stock price fell $3.17 to $503.10 during the event.