The iPhone 5C is meant to replace the iPhone 5, which Apple will no longer sell. The 5C has nearly identical internal specs to the 5, except that the 5C is slightly heavier and doesn't come with a 64GB storage option.
Over the years, we've seen iPods in (almost) every color of the rainbow, but for the iPhone, Apple has stuck with black and white. That changes now with the iPhone 5C, which comes in pink-red, yellow, green, blue, and white.
The color choices are similar to those found on the current iPod Touch, iPod Nano, and iPod Shuffle models.
Since the 5C is $549 off contract, it's hard to say this is budget iPhone we were waiting for. However, on contract, the iPhone 5C costs $99 for the 16GB model and $199 for 32GB of storage, so it's still cheaper than the new iPhone 5S.