Tech giant Apple stunned its competitors by launching a cheaper, smaller yet powerful iPhone SE and a game changer 9.7-inch iPad Pro.
The 64 GB version of phone will come at $499, while the 16 GB model is priced at $399.
It will be in four colours, company announced during its special "spring lineup" at the packed auditorium at its Cupertino, California-based headquarters in US.
iPhone SE will be available in 100 countries including India by May and will go on full sale on March 31.
Smartphone is a mix between the iPhone 5 and iPhone 6 generations of devices with design and size of iPhone 5S and the specs and capabilities of the iPhone 6S. Apple said the iPhone SE "the most powerful 4-inch smartphone ever".
As powerful as iPhone 6S, the device will have a 64-bit A9 processor and M9 motion co-processor. That means it can play games just as brilliantly as Apple's current flagship, plus it supports hands-free "Hey Siri" prompting.
Camera is also carried over from the 6S - it is the same 12-megapixel iSight camera with a true tone flash. With its new image signal processor it has the ability to shoot Panorama up to 63MP, 4K video (1080p up to 60 fps) and slo-mo up to 240 fps.
Compared to iPhone 5S that precedes the new SE at the 4-inch size, Apple's new smartphone has 50 percent faster LTE than 5S, faster Wi-Fi (802.11ac) and the significant addition of Apple Pay support.
The device supports Voice over LTE (VoLTE) and Wi-Fi calling and runs on the newly-launched iOS version 9.3.
The new iOS 9.3 operating system includes a night mode that reduces blue light and automatically shifts colours to the warmer end of the spectrum at night helping the user sleep better.
Last year, Apple sold 30 million 4-inch iPhones.
Apple also launched a new lightweight 9.7-inch iPad Pro which is touted as 40 percent less reflective than an iPad Air 2.
It also features a new technology called "True Tone Display", which measures the color temperature of ambient light and adjusts the display to match. Like the iPhone SE, the Pro also takes advantage of iOS 9.3's new blue-light reduction feature for late-night use.
It is powered by the A9X processor and has a similar four-speaker system. Apple said it is twice as loud as the Air 2. The new tablet is compatible with the Pencil stylus introduced last year.
Other accessories include a new Lightning-powered SD card reader and USB camera adapter.