Apple’s iPhone X: Face ID, no home button, $999

CUPERTINO, Calif.  -- Holy hardware! The next iPhone costs $999.

The iPhone X comes with all the bells and whistles: an edge-to-edge screen, no home button, face recognition, wireless charging and an improved camera. The company also unveiled the iPhone 8 and iPhone 8 Plus, which also support wireless charging.

Ten years after the first iPhone, Apple announces the iPhone X.

The loss of the home button means no more fingerprint sensor. To unlock the phone, you can use your face with a new technology called Face ID. Front-facing cameras and sensors create a map of your face to determine if you are the phone's proper owner. It uses a flood light to work in the dark.

Apple said face detection is more secure than fingerprints. It added there was a one in 50,000 chance of a random person being able to open your phone with their fingerprint. But those chances drop to 1 in a million with face detection.

The company also introduced a Face ID-enabled feature called Animoji, which serves up animated emoji that mimic your facial expressions. For example, you'll be able to give your friends side-eye as a unicorn.

Apple spent a significant amount of time hyping up its 12mp dual cameras with image stabilization. Schiller said the new front facing cameras will "revolutionize" selfies by adding portrait mode.

Wireless Charging

The new iPhones will use a universal wireless charging system called Qi, which is already widely available at coffee shops, stores and airports around the globe. It is in every Starbucks store, and Ikea makes furniture with wireless charging capabilities.

Apple teased its AirPower wireless charging mat, which will debut next year. It can simultaneously charge your iPhone, AirPods and Apple Watch.

For now, users will have to use third-party wireless charging stations. Most wireless chargers that are already on the market will work with the iPhone, and they can be had for as little as $8 on Amazon.

Apple isn't the first smartphone maker to offer wireless charging. Samsung Galaxy phones already have wireless charging and it is also available on many other high-end Android phones.

Apple's new all-glass design makes wireless charging possible: You can't wirelessly charge a phone through aluminum.

Apple announces the new Apple TV featuring 4K and HDR during its event on September 12, 2017.

In addition to supporting wireless charging, the iPhone 8 devices are faster, sturdier and have an improved camera. The company also previewed a few new features coming to iOS 11, such as augmented reality.

On Tuesday, Apple also revealed the Apple Watch Series 3, which is cellular-enabled.

A $1,000 iPhone

The iPhone X will cost $1,000. But is anyone going to pay such a high price for an iPhone? You bet.

"Apple has cultivated a class of buyers who pay more and expect to pay more for a type of brand prestige," Steve Wozniak, Apple's cofounder, told CNNMoney on Monday. "Even techies want to show off that they have the very latest iPhone."

Apple annoucnes its latest iPhone on September 12, 2017.

The iPhone X is the first iPhone in three years to look substantially different from the iPhone 6.

Although some may want the latest and greatest, Apple fans weren't always willing to shell out so much for a new iPhone. A decade ago, consumers feigned shock and horror when the company said the first iPhone would cost $599. Apple eventually cut the price by $200 and offered credits to customers who already bought one.

Fast forward to today: The average selling price of an iPhone is $605 -- and no one blinks an eye. The 256 GB iPhone 7 Plus had cost $969. So some folks have already paid $1,000 for their iPhones.

Apple and the rest of the smartphone industry have done an impressive job removing the sticker shock by moving to a monthly payment model.

The average iPhone sold last quarter cost just $25 a month over two years. At $999, the iPhone X will cost $42 a month over two years. That means $17 a month more than what many are already paying.

Apple analyst Gene Munster, now with Loup Ventures, believes between 30% and 40% of Apple's customers would be willing to pay the $999 to buy the new iPhone.

People spend more than four hours a day on their phones, according to comScore. That makes them far more valuable than any other gadget -- including laptops, which easily sell for over $1,000.

"Your greatest return on investment for any piece of technology is your phone," Munster said. "People have become more comfortable spending lots of money on their phones."

Apple announces the new Apple TV featuring 4K and HDR during its event on September 12, 2017.

The counterargument is that there are really great phones on the market now for less than $400. Xiaomi, OnePlus and Motorola have raced to offer competively-priced devices that maintain surprisingly high quality. Even Apple understands the appeal of lower-cost devices with its iPhone SE for $399.

But Horace Dediu, an Apple analyst with Asymco, believes offering a super high-end iPhone is the right move for Apple, because it follows a classic retail strategy.

Consumer goods makers typically offer low-end, mid-range and high-end products, and customers typically find themselves buying in the middle. Apple has offered a less-expensive and a mid-range iPhone, but it hasn't yet come out with a bells-and-whistles, aspirational iPhone for its biggest fans.

"Without an aspirational product, it assumes there's no value in a phone beyond its utility," Dediu said. "But some people want to buy expensive things to feel good about themselves, because they want to give expensive gifts or feel powerful or influential."

How does Apple's biggest fan feel about the $999 price?

"I'm sure that I'll want at least one of the new iPhone, but maybe not five of them, like in the past," Wozniak said.