Apple unveils 4-inch iPhone SE, new iPad Pro

Apple unveiled a new 4-inch iPhone SE on Monday at a town hall in Cupertino, California, calling it the "most powerful 4-inch phone ever." It will retail for $399.

CEO Tim Cook also announced new woven nylon Apple Watch bands, iOS 9.3, a 9.7-inch iPad Pro, new Apple TV features, and CareKit, an initiative to help people develop medical apps. The company slashed the price of the watches less than one year after launch, saying they'll now start at $299.

Cook also addressed Apple's battle with the FBI over unlocking the smartphone of one of the San Bernardino gunmen.

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"We need to decide as a nation how much power the government should have over our data and over our privacy," he said.