The latest iPhone model's major update is the introduction of 3D Touch, technology which can recognise the pressure of a touch on the screen meaning new gestures can be used beyond simple swiping.
"It senses how deeply you press the display, letting you do all kinds of essential things more quickly and simply," the company said. Using this, Apple has created a "peek and pop" feature, meaning a light press on the screen lets you glimpse emails, for instance, without fully opening it, and then pop into it fully if needed. It also works for glimpsing websites, photos and maps.
The new phones are made of a new aluminium, fixing the issue dubbed "bendgate" which afflicted the preceding iPhone 6, and come in a new rose gold colour.
The camera gets an update with a 12 megapixel camera and the ability to shoot video in ultra-high resolution 4K, which is four times better than 1080p HD video of the iPhone 6.
Both phones will be priced at the same as the 6 and 6 Plus which were launched last year, however, both these now older models will be reduced to a lower price point.
A new iPhone upgrade program has also been unveiled which will let iPhone users upgrade at every year to the latest iPhone model. The program will be available through the Apple Store on any network for $32 per month in the US.
Pre-orders will begin on 12 September and they will go on sale from 25 Septemeber in major markets, including the UK and US.
The phones will be available in the UK on O2, Vodafone, EE, Three and Virgin, the five networks said today.
The latest models will run iOS 9, the newest version of Apple's operating system, which will also be available on earlier models as an update from 16 September.