The top-seeded American, a 21-time major winner, was expected to win comfortably but was broken on five separate occasions as she went down 4-6 6-3 4-6
The American superstar had won her last eight Major finals and was bidding to draw level with Steffi Graf's tally of 22 Grand Slam titles.
But the world No 1 looked gripped with nerves as she made 46 unforced errors to lose 4-6 6-3 6-4 in two hours and eight minutes.
The tearful new world No 2 said: “When I played here in the first round, I was a match point down and I had one leg on the plane to Germany. I had a second chance and to win the final is a dream come true for me.
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| Struggle: Williams couldn't find her highest level in the final |
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| New champ: Kerber has won her first major singles title |
"My whole life I have been working really hard and now I can say I am a Grand Slam champion – it is crazy. These have been the best two weeks of my life.”
Kerber is only the second champion in the Open era to save a match point in the first round – against Japan's Misaki Doi – and the first to win the Australian Open after losing in the opening round the previous year. She is the first German to win a Grand Slam since Graf in 1999.
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| Emotional: Kerber couldn't hold the tears back at the end of the match |
Six-time champion Williams said: “Angie congratulations – you did so well. You played the best in this tournament and you truly deserve it.”
Chris Evert said: “Serena just never got going today – never got her timing. She is human. Sometimes we forget. We put her on a pedestal but she is a human being and she has nerves.”
