The cut price plastic iPhone 5C and "gold standard" 5S model were unveiled by the company's chief executive Tim Cook.
He said the cheaper 5C device would come equipped with "all the great technology that customers have loved" on previous models.
Among the top features of the new phones was a new fingerprint scanner on the iPhone 5S model which lets users unlock the phone and make purchases online using a finger swipe.
The cheaper, plastic 5C model comes in a range of colours - a first for the iPhone.
'From £469': the colourful iPhone 5CMr Cook introduced the device during a presentation at Apple's California base - streamed live at a conference in Berlin - which he used to herald the iPhone 5S as "the most forward-thinking phone we have ever created".
The new flagship mobile - dubbed the "gold standard in smartphones" by the tech giant - will come in more traditional Apple colours of silver and slate grey as well as a new golden hue.
Gold standard: The 5S devices from behindThe cheaper 5C costs $99 (£63) over a two-year contract or $736 (£469) as a one-off payment.
It is billed as a handset that will be "more fun" than any iPhone yet and will come in a range of five vivid colours: blue, white, pink, yellow and green.
Mr Cook raised a laugh as he told the audience: "A couple of you may have been expecting this."
Flash: Phil Schiller, senior vice president of worldwide marketing for Apple Inc, shows off the device's new cameraHe added: "The business has become so large that this year we are going to replace the iPhone 5 and we are going to replace it with not one but two new designs. This allows us to serve even more customers."
Apple's Philip Schiller told the audience: "iPhone 5s is the most forward-thinking smartphone in the world, delivering desktop class architecture in the palm of your hand."
He raised a massive round of applause as he introduced the fingertip scanner - named Touch ID - which, he said, would provide a "simple and secure way to unlock your phone with just a touch of your finger."
Secure: Schiller showing off the new fingerprint scanner of the 5SThe security feature is built into the home button and uses a laser cut sapphire crystal along with a sensor to take a high-resolution image of a user's fingerprint.
According to Apple, the technology can "intelligently analyse" the print to provide accurate readings from any angle.
All fingerprint information is encrypted and the firm has insisted it will never be stored on Apple servers.
Beyond unlocking the phone, the feature can be used as a secure way to approve purchases from the iTunes Store, App Store or iBooks Store, Apple said.
No Jobs: Tim Cook has been criticised for being predictable with this launch - something that was never said about his predecessor Steve JobsIt has promised customers that all actions on the device would be faster than on previous handsets, from launching apps and editing photos to playing graphic-intensive games.
The 5S phone will be available in the UK for a suggested retail price of £549 for the 16GB model, £629 for the 32GB model and £709 for the 64GB model.
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