In an embarrassing moment for Apple, the new phone’s face ID unlocking system initially failed in front of a packed audience.
The iPhone X, pronounced 10, features wireless charging, an infrared camera and improved battery life, and will cost £999 when it is made available on 3 November.
Unlike previous models it has no physical home button, and will include facial recognition software which replaces the fingerprint sensor used to unlock the phone.
The Face ID technology can also be used to create Animoji – animated emoji controlled by the user’s face.
Announcing the iPhone X at the company’s new Steve Jobs Theatre in California, Apple chief executive Tim Cook described the model as “the biggest leap forward since the original iPhone”.
However, the launch did not go fully to plan as Apple vice president Craig Federighi initially failed to unlock the device using Face ID.
As well as the iPhone X, Apple also announced the new iPhone 8 and iPhone Plus 8, which will cost £699 and £799 respectively.
Both will feature wireless charging capabilities, while the 8 Plus will include new camera technology called portrait lighting.
The software uses artificial intelligence to automatically improve the lighting effects of portrait photographs.
Both models are dust and water resistant, and feature 12-megapixel rear cameras.
Away from smartphones, Apple also announced the Apple Watch Series 3, which includes its own mobile signal.
The new feature will enable users to make calls, send messages and stream music without being connected to a smartphone.
An enhanced version of the Apple TV which supports 4K resolution and high dynamic range (HDR) was also revealed.
The Watch and TV will go on sale on 22 September, alongside the iPhone 8 and 8 Plus.
Tech analysts were split on the appeal of Apple’s new iPhone X model.
Jan Dawson of Jackdaw Research described it as “a far bigger upgrade” than previous devices, adding it would become “the object of desire for many users”.
However, Ernest Doku, from uSwitch.com, said Apple “still faces a challenge in convincing both the uninitiated and long-term fans alike that these new devices are the true innovation the market has long needed”.