apple ceo – Erica Banasihan

Apple Inc introduced two new iPhones on Tuesday (Wednesday, PHL time), the iPhone 5S and the iPhone 5C that comes in five colors and starts at $99 with a contract, priced to bring one of the industry’s costliest smartphones within reach of the masses in poorer emerging markets

Apple CEO Tim Cook says the two new designs will replace the iPhone 5.

The iPhone 5C will be powered by the A6 chip, will feature an 8 megapixel camera and photo filters.

The second smartphone model is the iPhone 5S and has the A7 chip and comes in three colors, “Space” grey, silver, and gold.

The iPhone 5C will greatly help Apple in many markets. While most phones come with a 2-year contract in the U.S., it’s not the case in the rest of the world. A new cheaper iPhone was highly anticipated as it could become a best-selling device in Europe and Asia. In these countries, customers can opt for cheaper plans but have to purchase unsubsidized phones. While it’s a great deal over two years, the high price of the high-end iPhones sometimes scares people off and make them buy Android phones.

In a surprising move, the iPhone 5 is not sticking around while Apple will now “sell” the iPhone 4 for free with a two-year contract. On the other hand, the iPhone 5 is now discontinued.