Apple has unveiled a new, cheaper version of the iPhone 5C smartphone and updated its least expensive full-size iPad.

The latest iPhone 5C has 8 gigabytes and is priced at about €509 without a contract.

The California-based company said the new version of the 5C in only available in European stores.

Apple introduced the plastic-cased iPhone 5C last year in a bid to capture more budget-conscious smartphone buyers.

Customers have instead favored the higher-end 5S model with a more powerful processor, sharper camera and fingerprint reader.

Apple also updated its least expensive full-size iPad, adding better cameras and a faster chip to compete with products using Google 's Android software.

The fourth-generation iPad, with a 9.7-inch Retina display, has an A6X chip designed by Apple and a 5-megapixel camera for video chats, Apple said in a statement today.

The iPhone is Apple’s most important product, accounting for more than half of revenue in the latest fiscal year.

Bloomberg