The 64 GB version of the phone will come at USD 499 while the 16 GB model will cost you USD 399. It will be available in four colours including sleek rose gold colour, the company announced during its special "spring lineup" at the packed auditorium at its Cupertino, California-based headquarters.

The iPhone 5SE will be available in 100 countries including India by the end of May and will go on full sale on March 31.The phone is a mix between the iPhone 5 and iPhone 6 generations of devices with size and design of iPhone 5S and the specs and capabilities of the iPhone 6S.

Apple said the iPhone SE "the most powerful 4-inch smartphone ever".As powerful as iPhone 6S, the device will have a 64-bit A9 processor and M9 motion co-processor.

That means it can play games just as brilliantly as Apple's current flagship, plus it supports hands-free "Hey Siri" prompting.The camera is also carried over from the 6S - it is the same 12-megapixel iSight camera with a true tone flash.

With its new image signal processor it has the ability to shoot Panorama up to 63MP, 4K video (1080p up to 60 fps) and slo-mo up to 240 fps.The phone is claimed to have an improved battery life, Bluetooth 4.2 and new microphones.

Compared to the iPhone 5S that precedes the new SE at the 4-inch size, Apple's new smartphone has 50 percent faster LTE than 5S, faster Wi-Fi (802.11ac) and the significant addition of Apple Pay support. The device supports Voice over LTE (VoLTE) and Wi-Fi calling and runs on the newly-launched iOS version 9.3.

The new iOS 9.3 operating system includes a night mode that reduces blue light and automatically shifts colours to the warmer end of the spectrum at night helping the user sleep better.

"Many, many customers have asked for this," said Apple CEO Tim Cook during Apple's launch event. "And I think they're going to love it. "Last year, Apple sold 30 million 4-inch iPhones. Apple also launched a new lightweight 9.7-inch iPad Pro which is touted as 40 percent less reflective than an iPad Air 2.It also features a new technology called "True Tone Display", which measures the color temperature of ambient light and adjusts the display to match.