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CEO Tim Cook taking the stage in San Francisco, said 'Apple has never been stronger' as the new handset was revealed.

It has a larger 4" screen, along with a new dock connector and headphone design.

The phone will go on sale on September 21st, and will cost the same as the previous version, the 4S.

With a casing made from glass and aluminium, is it also the thinnest iPhone ever made, at just 7.6mm thick

It also contains an eight-megapixel camera which can take 28-megapixel panoramic shots.

Apple confirmed the phone, available in black and white, has a four-inch display, - 1136x640 - which is the same width as previous models but taller.

It uses a new display which is 30 per cent thinner that previous handsets.

Schiller, vice president of marketing, said: 'It is designed to fit in the hand, and all of our software is being updated to take advantage of this display.'

The handset also has a new chip, the Apple A6, which is twice as fast as previous versions but 22% smaller.

The iPhone is expected to be the biggest selling in Apple's history, with an estimated 8m set to be sold according to some estimates.

The battle for domination of the mobile market has become increasingly heated recently with Apple's competitors taking it on with a series of new products.

The firm boasted the new handset has eight hours of 3G talk time, and a 225 hour standby time.

It also has an eight megapixel camera with a 3264x2448 sensor, and has improved its performance in low light, and a lens made from sapphire crystal.

The handset also now has a panorama mode to create wide shots. 'The ocean looks bluer, kids look happier,' joked Schiller.