Promising, unsurprisingly, to be "the best iPhone that we have ever created", the iPhone 7 claims ten key new features, including a new design, new home button and IP76 water and dust resistance.
The new iPhone 7 home button is 'customisable', with force sensitive control and new, more responsive taptic feedback, which can be programmed by third party apps.
There's a new Retina HD display for the new iPhones, promising to be 25 per cent brighter, adheres to the wide colour gamut cinema P3 standard and has a 3D Touch layer.
Apple also confirmed the removal of the headphone jack, focusing instead on the Lightning connection for audio.
MORE: iPhone 7 hands-on review
The AirPods will cost £159, the Lightning EarPods will be £29 when sold separately, and the Lightning to 3.5mm headphone adaptor will cost £9.
And for the first time there are stereo speakers on an iPhone, promising twice the volume.
The iPhone 7 and 7 Plus cameras get a big update too, with new optical image stabilisation, a wider aperture lens and a new 12-megapixel wide colour capture sensor. Faster, more energy efficient, the iPhone 7 camera sports a Quad LED true tone flash.
iPhone 7 Plus adds a 12-megapixel telephoto camera, allowing you to use both cameras to capture images. Both phones have 7-megapixel FaceTime HD cameras.
More after the break
There's a new Apple A10 Fusion Chip - "the most powerful chip ever in a phone" - that promises to run twice as fast as the iPhone 6, while using less power.
There are new finishes, too, an anodised matte black and a jet black.
In a strange turn of events, Apple's official Twitter account sent out a tweet went at the start of the event, before Tim Cook, Apple CEO, had announced the new iPhone 7.
As well as a water-resistant body, the tweet - now deleted - appeared to show that Apple has indeed removed the 3.5mm headphone jack.
Apple also confirmed the new iPhone 7 has stereo speakers, new cameras and a "longer battery".
The iPhone 7 and iPhone 7 Plus will be available in silver, gold, rose gold and the new black finish in 32GB, 128GB and 256GB models starting at £599. The new jet black finish will be offered exclusively on the 128GB and 256GB models.
The iPhone 7 will be available from 16th September.