Mixed reaction to Apple’s latest iPhone update
Apple shares fell up to 3% before recovering a little.
New chief executive Tim Cook helmed his first major product launch with aplomb. The operations and supply-chain expert, not known for pitching products, stood in for ailing co-founder Steve Jobs, who did not show up as some expected he would.
The new iPhone 4S is faster, souped-up and comes with voice recognition and a better camera as expected, but did little to lift the bar for smartphones.
Investors and Apple fans, who were looking to be blown away by some amazing new surprise, sent the shares down as much as 3%.
“It’s been 16 months and all you’ve got is an A5 processor in the existing iPhone 4,” said BGC Partners’ analyst Colin Gillis.
The latest iPhone come at a critical juncture as Android phones by Samsung Electronics and other competitors close in on Apple’s lead. Android phones dominate the US market three years after Google introduced the software.
Some shareholders and analysts were expecting a cameo appearance by Jobs, now chairman. The pancreatic cancer survivor, who handed the reins to Cook in August after taking his third medical leave, did not appear.
Apple launches are some of the hottest events on the tech calendar. Yesterday’s “Let’s talk iPhone” show marked Cook’s unofficial debut since taking over from Jobs in August.
Apple must sustain the popularity of its iPhone 4, which is more than a year old. Apple sold over 20 million units in the third quarter, which ended June 25.
The iPhone, which accounts for more than 40% of Apple’s sales, has been a big success since it came out in 2007, making Apple into one of the world’s leading consumer electronics companies.
The iPhone event took place at Apple Central — the same venue where the iPod first was introduced years ago — versus the larger, splashier venues of more recent choice such as San Francisco’s Moscone Center.
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