While Apple is continuing to update its existing, cheaper models, the new iPhone X - pronounced like the number 10 - will have a screen with higher resolution and "OLED" technology for richer colours.
"It's an impressive engineering feat," one analyst said at the companies California launch event today.
It will also lose a distinct home button to make more room for the 5.8-inch display, which is slightly more than the Plus model's 5.5 inches. The features are similar to what Samsung offers and will cost a hefty $NZ1,799.00.
The new design will enable new ways to interact with the phone. Instead of pressing the button to get the home page, you swipe up instead.
Apple is also offering the ability to unlock the phone with facial recognition rather than a fingerprint or passcode.
Though some Android phones offer this, Apple is adding sensors to improve performance and says it worked with mask designers during testing to improve security.
An executive initially failed to unlock the phone this way in a demo today, though.
The new phone, which is coming November 3, will also permit animated emojis that mirror your facial movements and promises two more hours of battery life than what's in the current iPhone 7.
Apple also unveiled a new iPhone 8 $NZ1,249.00 and a larger 8 Plus $NZ1,449.00 with upgrades to cameras, displays and speakers.
Those phones, Apple said, will shoot pictures with better colours and less distortion, particularly in low-light settings. The display will adapt to ambient lighting, similar to a feature in some iPad Pro models. Speakers will be louder and offer deeper bass.
Pre-orders for the iPhone 8 versions begins at 7:01pm on Friday, with pre-orders for the iPhone X starting at 8:01pm on October 27, in New Zealand.