The iPhone 5C will be available in five colors - blue, white, pink, yellow and green.
It will also have a 4-inch retina display and has an 8 mega pixel camera.
Prices for the iPhone 5C start at $99 for a 16 gigabyte model and $199 for a 32 gigabyte model.
Apple also introduced the iPhone 5S, which will come in silver, gold and "space gray",and will run on A7, which is a new chip and runs twice as fast as the A6.
The iPhone 5S will also be able to run more fitness and health applications.
The phone's camera, called iSight will have larger pixels allowing it to capture more light.
Prices for the iPhone 5S will start at $199 for 16 gigabytes of memory.
Both the iPhone 5C and iPhone 5S will be on sale on September 20th.
The company's senior vice president of marketing describes the iPhone 5S as the gold standard in smart phones.
Will you be picking up a new iPhone?
Share you comments on our Facebook page for a chance to be featured on Abilene Midday at 11:30!