The three-tier line-up impressed analysts, who saw it as a much more integrated family of phones, design-wise, and believed Apple had a lot of upside with the free, discounted and full-priced models.

"They'll gain market share on all fronts," said Patrick Moorhead, principal analyst with Moor Insights & Strategy. "The iPhone 3GS had an industrial design that stuck out, but these three look like they're from the same family. And the [free] iPhone 4 is the value proposition."

On the outside, the iPhone 5 looks dramatically different from 2011's iPhone 4S. "It is the most beautiful product we have ever made, bar none," said Philip Schiller, who heads Apple's marketing.

Apple CEO Tim Cook takes the stage after the introduction of the iPhone 5 during Apple Inc.'s iPhone media event in San Francisco on Wednesday. (Photo: Reuters/Beck Diefenbach)

The iPhone 5 takes the tape at 4.9-in., about 7% taller than all previous models. It's thinner -- just 0.3-in., or 7.6 millimeters -- by 18% and lighter by approximately 20% compared to the iPhone 4S. Its 4-in. screen boasts an 1136-x-640-pixel resolution. The case is a combination of aluminum and glass, with the chassis composed of the former.