Apple has not unveiled the iPhone 5, as was expected and rumoured across the internet for months, but has instead revealed an upgraded version of the iPhone 4, called the iPhone 4S.
The 4S is twice as fast as the iPhone 4 and looks the same as its predecessor, but Tim Cook, Apple's new CEO, said it has been completely rebuilt on the inside, according to Yahoo! News.
The new iPhone model uses the same A5 processor as the iPad 2, seven times faster graphics for gaming and has an improved battery life.
The battery can now withstand eight hours of 3G talktime or nine hours of Wi-Fi use, the camera has also been improved to an eight megapixel sensor that is 30% sharper, with 3264x2448 resolution designed to capture crisper images.
The camera also has the ability to detect up to ten faces in a photo and is designed to enable users to take a shot within 1.1 seconds and multiple shots within half a second of each other.
The iPhone 4S also includes full 1080p HD video recording for the first time.
"Our customers now have the best stills camera they've ever owned, the best video camera they've ever owned and they have it with them wherever they go," said Apple's Phil Schiller.
Apple's latest iOS 5 operating system will run the iPhone 4S, with up to 200 new software features and iCloud, which is designed to allow users to backup all their content and share it between an iPhone, iPad, iPod touch and a Mac computer.
The electronics giant also revealed an intelligent voice recognition system called Siri, Apple said that this software is designed to recognise the meaning behind words to fetch the latest required information, it can also search the internet and find answers to a users queries.
Siri also features an automatic alarm clock, users tell the software what time they want to get up and it sets the alarm, it can also be set to read messages such as texts or emails that are received while you're using a hands-free headset.
Steve Jobs, Apple's former CEO did not make an appearance at the event.