He told the audience its new A6 chip allowed app developers to use "state of the art performance and graphics".
He added the phone's "console quality graphics" did not affect the battery which had a longer life than the previous 4S model.
The phone's camera has a sapphire crystal lens cover to protect it and a panorama option which allows the user to take panoramic pictures.
Mr Schiller joked: "The world is just a more beautiful place when you use an iPhone 5."
The audience was shown an updated map function that uses 3D maps and has spoken word directions to thousands of destinations. They also saw a fly-over option which allows users to get an aerial view of streets around the world.