The Cupertino-based tech giant unveiled the cheaper, lower-capacity version of the plastic-backed iPhone 5c, along with the re-introduction of the fourth generation iPad, overnight.
The company may have made the decision to introduce the budget items in a response to Android's growing market share, with Gartner reporting this month that Android captured 62% of the global tablet market share last yaer.
Apple's iPhone 5c, released last year, is relatively unique in that it featured modest specs and colourful plastic backing, but was only $100 or so cheaper than its superior 5s sibling, which packed a better processer and a fingerprint reader.
According to Apple's website the new iPhone 5c has just 8GB of storage and costs $679 outright, compared with $739 for the 16 GB model, which remains untouched.
Meanwhle the new 8 GB iPhone 5c is being sold for 4088 yuan ($723) on Apple's online store in China, the world's biggest handset market.
As we reported late last year China's top telco China Mobile finally began selling iPhones in January after six years of negotiations.