Apple live blog: Here comes the iPhone 5S
1:19 P.M.: Cook making the case that Apple's apps are good for creating content.
1:18 P.M.: Cook is now talking iWork, saying they're the best-selling mobile productivity apps on any platform.
1:17 P.M.: Federighi says iOS 7 available September 18 and Tim Cook takes stage again.
1:16 P.M.: Federighi is now going back through iTunes Radio ... plugs Canadian rock band Rush (hmm).
Federighi says developers are coming out with new iOS 7-inspired app designs.
1:14 P.M.: Federighi shows "year view" in photos, Tim Cook stealthily starts a clap.
1:13 P.M.: Federighi says new ring tones. "You may miss a call due to your dancing ..."
Federigh says that the camera is better in iOS 7, new square aspect ratio camera (great for Instagram) ... photos grouped by moments.
1:12 P.M.: Federighi says Siri is massively improved in iOS 7. Siri can now search Twitter, Wikipedia and photo search.
1:11 P.M.: Federighi: iOS 7 can recommend where you need to go, traffic and weather conditions.
Federighi does a search for mousse, and a conversation pops up with someone complimenting his hair. Inside Apple joke...
1:10 P.M.: Now, Craig Federighi, Apple's SVP of spftware engineering, takes the stage.
Federighi says virtually overnight, hundreds of millions of people will download iOS 7. He is going over the basics of iOS 7 that we learned at WWDC in June.
1:09 P.M.: Cook says iOS will quickly become the world's most popular mobile OS (he must mean OS version).
1:08 P.M.: Cook says, "I would encourage you to drop by after today's event..." Of course you would, Tim.
Cook says next month we will ship the 700 millionth iOS device.
1:07 P.M.: At Stanford store, one room for product and another room for services.
1:06 P.M.: Also, retail: expanding footprint outside U.S., but this month attention turns home to U.S., Stanford Shopping Center; 5 million customers.
Shows new Stanford store (Cook visited there a few days ago and photos of him showed up on Twitter)
1:05 P.M.: (Lots of preparation, young hip kids outside, streaming into the venue screaming ... you can imagine...)
Interesting experiment in staging live television from Apple, right?
1:04 P.M.: Cook says that 100 countries got the live stream. Eddy's team prepared a simple and elegant app, so people could see it ... we prepared a video (which we'll now see)
1:03 P.M.: "It's great to see everyone. Thanks very much for joining us." Cook gives a shout out to Beijing, Berlin and Tokyo. Now for updates.
First, iTunes Festival. 7th year. This year was the best, he says. 30 nights in London, including Elton John, Gaga, Timberlake.
"Despite it being the hottest ticket in London, we don't charge anything to get in ... 20 million people applied for tickets," he said.
1:02 P.M.: Tim Cook has taken the stage.
1:00 P.M.: Lights have gone dim.
12:58 P.M.: The Apple event will begin in a few minutes. They've asked us to set phones to silent.
Apple is expected to debut its next-generation iPhone at its Cupertino event today, but that may not be all the company reveals.
(Read more: Why 'device exhaustion' spells trouble for Apple )
The iPhone 5S is likely to be revealed and may possibly be available in a new color, possibly a champagne tone. It's also speculated that the device may have a biometric sensor that can read a user's fingerprint.
Other expected announcements may include a roll out of an updated full-size iPad and iPad mini.
However, iPad updates may not occur until later this year. Software updates for Apple TV may also be in store, according to some reports.
There's also been some speculation that Apple may announce it's opening the TV platform up to developers; however, this may not come until next year.
The event begins at 1 P.M. ET and CNBC will be live blogging the event. Be sure to follow us here for all the latest updates.
—By CNBC's Cadie Thompson. Follow her on Twitter @CadieThompson.