While the new iPhone has a larger four-inch display, just about everything else on it is smaller than the iPhone 4S.
"New iPhone 5 is just 7.6 millimeters thin, that's 18-percent thinner than the iPhone 4S. It also weighs just 112 grams," says Philip Schiller of Apple.
Perhaps even more so than with any other Apple product launch, it's the new software that is arguably just as newsworthy as the new hardware.
Since Apple is breaking from Google when it comes to maps, iOS 6 has its own mapping software with turn-by-turn directions.
"Passbook" is a new feature for collecting things like concert tickets, boarding passes and gift cards all in one spot. "Photostream" lets users share a group of photos with a group of contacts and Siri now lets users do even more with
their voice like open apps or post to Facebook.
For some, though, the reality may not live up to the hype.
"I think there might be some people who are disappointed and maybe wanted a bigger screen or features that aren't there," says Peter Rojas of Gdgt.com. "The iPhone is a franchise for Apple and they're going to iterate and improve the phone every year and it's not necessarily going to be a giant leap forward or gigantic transformation from one generation to the next."
The new iPhone 5 will cost $199 for the 16GB model, $299 for 32GB and $399 for 64GB plus a two-year contract on AT&T, Verizon or Sprint. Pre-orders start on Friday and they ship a week later on September 21.
On Wednesday, Apple also unveiled a newly designed iTunes store, a new iTunes app, new iPod nanos that are more like tiny iPod touches, new super-thin actual iPod touches and new earbuds.
