Phil Schiller, senior vice president of worldwide marketing at Apple Inc, speaks about iPhone 5 pricing during Apple Inc.'s iPhone media event in San Francisco, California September 12, 2012. [Photo/Agencies]

Ceding a lead

Apple has sold more than 243 million iPhones since 2007, and the device ushered in the current applications ecosystem.

But Samsung now leads the smartphone market with a 32.6 percent share followed by Apple with 17 percent, according to market research firm IDC. Both saw shipments rise compared to a year ago, with Samsung riding its flagship Galaxy S III phone.

Going on sale Friday from $199 with a data plan, the iPhone 5 will sport a 4-inch "retina" display, ability to surf a high-speed 4G LTE wireless network, and is 20 percent lighter than the previous iPhone 4S.

The iPhone 5 comes with Apple's newest "A6" processor, which executives said runs twice as fast as the previous generation. It will have three microphones and an 8 megapixel camera that can take pictures in higher resolutions.

It will hitch a ride on the three largest US carriers -- Verizon Wireless, AT&T Inc, and Sprint.