Apple unveils thinner, more powerful iPhone 5

SAN FRANCISCO —

Apple introduced its new iPhone 5 a lighter, thinner and more powerful version of its iconic mobile device, staking its claim to leadership in the red-hot smartphone market. Apple chief executive Tim Cook called the launch the biggest thing to happen to iPhone since the iPhone.

The company called the iPhone 5 the thinnest smartphone in the world, with an anodized aluminum body that is 18% thinner and 20% lighter than iPhone 4S. It features diamond cut chamfered edges and glass inlays for a truly incredible fit and finish..

Apple will start taking orders for the phone Friday and begin shipments Sept 21 in the U.S., Canada, Britain, France, Germany, Australia, Hong Kong, Singapore and Japan, and the phone will be available in 100 countries by the end of the year. Pricing for U.S. customers will start at $199 with a two-year contract.

The new device features Apple’s own new A6 processor, which according to Schiller, doubles the speed for loading web graphics. Battery life, a key complaint of smartphone users, is extended to eight hours with mobile phone and browsing and 10 hours if Wi-Fi connections are used.

Analysts expect Apple to sell tens of millions of the new iPhones in the coming months, luring in smartphone buyers who have been waiting to upgrade, it is possible Apple may ship between 48 million and 53 million iPhones in the fourth quarter and up to 266 million in 2013.

A JPMorgan Chase analysis said at least eight million will be sold in the U.S. market this year, enough to give a half-point boost to US economic activity. But NPD analyst Stephen Baker said the key US market has very different dynamics than for previous iPhone launches and that means Apple may not have the same impact.

Apple shares, which hit record highs this week and extended the company’s position as the world’s most valuable firm, rose a modest 1.39% to $666.79 on the news.

Apple is widely expected to launch a smaller version of its market-leading iPad tablet computer later this year.