Apple says it will release two new iPhone designs later this year -- one that comes in five colors and one that can read a fingerprint.
The iPhone 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. And it comes in five colors - green, blue, yellow, pink and white.
The iPhone 5S will run on a new chip, the A7, which Apple says is up to twice as fast as the A6. It comes with an upgraded camera and something called "Touch ID," which reads fingerprints -- so you just have to touch the home button to unlock the phone.
Apple unveiled the new designs at 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.
Apple also announced that its next mobile operating system, iOS 7, will be available as a free download on Sept 18. It can be downloaded on the iPhone 4 and later models, as well as on the tablets beginning with the iPad 2.