Apple chief executive Tim Cook told a media event that the new handsets, the iPhone 8 and larger iPhone 8 Plus, represent "a huge step forward" for the California tech giant, which is marking the 10th anniversary of the iPhone.
Apple senior vice president Phil Schiller said the new devices were the first smartphones "really created for augmented reality," with improved power and graphics.
The unveiling event was the first at Apple's new "spaceship" campus in Cupertino, California.
Apple also unveiled an updated smartwatch and an upgraded streaming video system for 4K high-definition television.
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