Apple's iPhone 5 will be the first handset in Britain to be compatible with Everything Everywhere's new superfast 4G mobile internet network.
The new handset, launched in San Francisco today, has a 4-inch screen - slightly taller than its predecessor - and will be available to UK customers from September 21st.
The latest iPhone comes as Apple tries to fend off competition that has reached fever-pitch.
Google Android has become the most-used mobile operating system in the world, while key supplier and rival Samsung Electronics has taken the lead in smartphone sales.
As a result CEO Tim Cook, who took over from the company's late co-founder Steve Jobs last year, faces pressure to keep Apple at the forefront of the industry.
- New processor, upgraded camera
The iPhone 5 sports a 4-inch "retina" display, ability to surf a high-speed 4G LTE wireless network, and is 20 percent lighter than the previous iPhone 4S.
It comes with Apple's newest "A6" processor, which executives claimed runs twice as fast as the previous generation.
It will have three microphones and an 8 megapixel camera that will take panoramic images up to 28 megapixels in size.
Graeme Neill, deputy editor of Mobile magazine, told ITV News the new device announcement was "lacking in surprises":
Many of the features of the iPhone 5 were known already so tonight's announcement was a bit lacking in surprises.
But the company has responded to consumer demand by increasing the screen size, improving the camera and making the battery last longer.
How iPhone 5 compares with its main rivals
- iPhone 5: 4 inches
- Samsung Galaxy S III: 4.8 inches
- Nokia Lumia 920: 4.5 inches
- iPhone 5: 8 megapixels
- Samsung Galaxy S III: 8 megapixels
- Nokia Lumia 920: 8 megapixels
- iPhone 5: 225 hours standby, 8 hours talk time
- Samsung Galaxy S III: 790 hours standby, 11 hours talk time
- Nokia Lumia 920: 300 hours standby, 10 hours talk time