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11:15: "Lots of fancy stuff here, wow, and it's just me and my old Fender here. Can I say Fender," he jokes. Then he says he was a "computer operator as a kid, and looking around at all this magic I wonder if I went into the wrong field." When he was little, he says his father "lived on the radio" as a dance band singer. "I thought what can I sing for you today ...well you got this Apple radio thing going on so ..." Kicks into "Radio, Radio."
11:13: Costello ripping through "(What's So Funny 'bout) Peace, Love and Understanding." His voice sounds like it did 30 years ago.
11:10: Cook is back on stage, showcasing a few ads that will hit TVs soon. First, for 5C, is awash with color, showing how the phone integrates into a world of color. Most languages the actors speak are NOT English, again showing how Apple intends to push more aggressively into global markets. "I'm so incredibly proud of the work of our teams," says Cook. "But I'd like to return to music for a moment. We say it's deeply embedded in our DNA. We do really love music." Certainly, Steve Jobs did. Cook says it's time to introduce a special guest. "One of the best singer songwriters of our time" ...it's Elvis Costello.
11:07: Pricing of new iPhone5S: 16GB is $199, $299 for 32 GB, and $399 for 64GB. And ...leather cases, in five colors for $39 each. "Now you've seen our new phone lines, 5C and the 5S, from $99 for one and $199 for the other," says Schiller. "Starting Friday Sept. 13 you can order 5C online, and a week later, Sept. 20, you'll be able to purchase the phones in stores. In the US" and a number of other countries. China is for the first time in the list of countries getting new phones when US customers do, reflecting the huge importance of this market for Apple.
11:01 AM: Schiller wraps up his presentation on the new iPhone5S, leading into a video, again with Jony Ive doing the voiceover (but he's not really easily in sight here). The video focuses on TouchID, which can be used to unlock the phone but also make purchases.
10:58: After Schiller shows off some untouched photos taken with the new iPhone, from squirrels at Yosemite to a "young homo sapien at rest," Schiller moves on to a hot topic today: security. Touch ID is here, using your fingertip to sense the phone's owner. It's scans through "upper layers of epidermis to lower, live layers." Sensor sits in home button. Elegant, simple.
10:54: Camera stuff now. Larger f2.2 aperture, 15% larger sensor area, and bigger pixels, which are now 1.5 microns in size. "That means more light, dynamic range and less noise in the pictures." The new software in the new phone take advantage of this upgraded tech, says Schiller. Camera now actually takes multiple photos automatically when you hit "snap" and selects the best one for you. New flash too; it senses the ambient light around you, whether florescent or sunset, with two LEDs, one bright and one warmer, with "1,000 color variations in between ...it's the first time it's been done not just on a phone but on a camera of any kind." Best of all: auto image stabilization, getting rid of movement during those action shots. That's a real plus for those of us who use their iPhone's as a camera almost exclusively. Camera now also shots "bursts" of many shots, allowing you to pick the best one. And finally, slow-mo - shows a guy diving into a pool, and halfway there he slows midair.
10:46: Schiller talks about new iPhone's improved ability to sense movement. Nike highlighted (Nikefuel). "A lot more performance, graphics and motion data ...but what about battery life? 10 hours 3G talk time, 8 hours 3G browsing, 40 hours of music and 250 hours of standby, he says.
10:44: Gamers behind "Infinity Blade III" take the stage showcasing an epic dragon-filled battle on an iPhone5S, shooting flames from his mouth while an knight slices and dices with his gleaming sword. Even for non-gamers, it's an impressive action-filled rendering for a phone platform.
10:39: Schiller now talking tech with newest top-line iPhone5S: it's A7 processor features: 64-bit desktop-class architecture, 64-bit kernel, libraries and drivers, re-engineered built-in apps, Xcode support, runs 32- and 64-bit apps. "It's up to two times faster...CPU performance is up 40 times from first iPhone until 5S, and half of that comes today with new phone."
10:36: Schiller is back as lights go up. "The second is the iPhone5S, the most forward-thinking phone that perhaps anyone has ever made. It's the most stunning phone design of anything in the industry." Video back up: a gold liquid flowing through the air ... mates to a white and gold phone, new to the white and black line-up. Looks a lot like iPhone5.
10:31: Pricing: $99 for 16 gigs, and $199 for 32 gigs, with contract. "They're PVC-free ...and yes, Android free." Big laughs from crowd. Now ...video on screen with Jony Ive talking about iPhone5C: "It's more capable and certainly more colorful...the iPhone5C is hardware and software working harmoniously together." He adds that it's "beautifully and unapologetically plastic," such a contrast from when Jobs introduced iPhone4 which he likened to a Leica camera, which is known for its solid steel feel. Ive:
10:27: Schiller on iPhone5C: The front is one glass multi-touch surface. "No seams or joints." Wallpaper is color-matched, "an experience of color." Custom cases are made of soft feel silicone rubber; cases have color but also circular cutouts that let color of iPhone5C to show through. "You'll be blown away by the quality of it." 4-inch Retina display; Apple designed A6 chip inside. Battery is slightly larger than that one in iPhone5. 8 MP camera, with 3x video zoom.
10:24: iPhone talk next up. Cook mentions iPhone 5 helped fueled growth. "In the past, we have announced new phones with lower prices. This year we're not going to do that. We're going to replace iPhone 5 with not one, but two new designs. This allows us to serve even more customers." Phil Schiller strides on stage. He announces new iPhone5C.
10:20: Cook back on stage. He mentions the "incredible collaboration" between Jony Ive in design and Craig's engineers. Next up: dissection of Apple's iWork system for mobile, anchored to Keynote, Pages and Numbers. Pushing the notion that iOS7 aren't "just for consuming content, they're incredible for creating content."
10:15: iTunes Radio is a feature of iOS7, says Federighi. Daft Punk's "Random Access Memories" fills the hall. Looks a lot like Pandora in some ways. "If you're like me you'll dial up the great Canadian rock band Rush and get a full dose of awesome." Big laughs.
10:13: New voice for Siri, and an added male voice. Siri also can draw on info from Wikipedia and the web. Also, when calls are coming in, there are new options for ring tones: some strange dance-type tunes that seem appropriate for a W Hotel lobby. In his demo, Federighi has lots of jokes about his hair: one reminder notes he needs to look for shampoo and conditioner. His hair indeed is absurdly perfect.
10:10: Apple's iOS7 honcho Craig Federighi on stage now, talking about iOS7, which downloads soon. He's going over the highlights, "which starts with the home screen." Focuses on the "depth" of the look, a "parallax effect" that responds to the movement of your hand.
10:09: Cook talks about the "architectural marvel" that is new Apple story in Pal Alto, which looks like a floating glass temple. Lucky Stanford University students.
10:05: Video on the big screen showing off the hip and large crowds who have thronged to recent iTunes Festival events in London; gives time for journalists to update blog posts and tweet.
10 AM: Tim Cook strides on stage to applause. Auditorium here is much smaller than Apple's usual haunts in San Francisco. He welcomes those joining from Beijing and Tokyo. First up: talks about iTunes Festival news, now 7 years running. 30 nights of live performances in London, including Elton John, Robin Thicke and Lady Gaga.
9:58: Among those spotted in the crowd of journalists here at Apple: Former vice president Al Gore and Yahoo! boss Marissa Mayer.
9:57 PT: In position at Apple HQ - the news happens now. Stay with us.
9:45 a.m. PT: Apple's event kicks off in 15 minutes. USA TODAY's Marco della Cava is at Apple headquarters in Cupertino, and will file updates from the event starting at 10 a.m. PT (1 p.m .ET).
Our original post
Apple will host an event at its Cupertino, Calif., headquarters on Tuesday, where it is widely expected the company will reveal its latest iPhone.
Industry experts suggest Apple will introduce a fingerprint sensor to beef up security on the device, while several published reports claim the company will show off two iPhone models: a high-end 5S and a lower-cost 5C for China and other developing markets.
Apple could also inject a bit of color into its popular smartphone. Reports have suggested Apple could offer the iPhone in a champagne gold color as well as graphite.
Shares of Apple are trading above $508 in early-morning trading.
A new iPhone arrives as competition in the smartphone market continues to escalate. Last month, Google introduced its first smartphone from Motorola, the Moto X. Meanwhile, at an event last week in Berlin, Samsung revealed its Galaxy Gear smartwatch, which lets users answer calls, check messages and set up alerts.
USA TODAY will have live coverage of Apple's iPhone event starting at 1 p.m. ET. Be sure to check back here for the latest news.