Apple unveils iPhone 4S; but no iPhone 5
CUPERTINO, Calif. -- Apple's new iPhone won't win any design awards. It looks exactly like the old one. And reaction to its debut was mixed, in part because it wasn't the iPhone 5 that was widely anticipated.
But Apple executives insist that the 4S packs a lot of punch and unveiled a host of new features for the phone on Tuesday at Apple headquarters here. In addition, they announced the first iPhone (the 3GS model) that will come free with a two-year contract — a move apparently aimed at bringing more step-up buyers into the iPhone family.
Forrester Research analyst Charles Golvin says the price chop opens a "huge" category for Apple — the midmarket consumer, who has bypassed iPhones due to the higher costs. The midmarket phone under $100 is the fastest-growing category for smart phones, he adds.
The new iPhone 4S — on sale a week from Friday — has a faster processor than the iPhone 4. Its camera's resolution and sharpness have been nearly doubled. Web pages and videos load more quickly. And it will be available to Sprint customers in the U.S. for the first time, a huge boon for the No. 3 wireless U.S. carrier. The phone is already available to Verizon Wireless and AT&T customers.
The iPhone, launched in 2007, has dramatically remade Apple into the world's most popular consumer products maker, representing nearly 50% of Apple's annual profits. And the iPhone has helped sell the iPad tablet, increase Apple's computer market share and move millions of songs and apps sold at Apple's online store.
It's clearly the future for Apple. "We believe that over time, all handsets will become smartphones," said Tim Cook, the new Apple CEO who took over from ailing co-founder Steve Jobs in August. "This market is 1.5 billion units annually, and an enormous opportunity for Apple."
Among the most touted feature of the 4S is its 8-megapixel camera, which performs better in low light than the iPhone 4 and offers more vibrant colors. The video camera shoots 1080p high-definition video, up from the 720p video of the iPhone4.
"For many customers, the iPhone 4S will be the best camera … and video camera they've ever had, and they'll have it with them everywhere they go," said Apple Senior Vice President Philip Schiller.
Apple will begin taking pre-orders for the iPhone 4S on Friday, with delivery scheduled for Oct. 14. The phones will come in black or white and cost $199 for 16 gigabytes, $299 for 32GB and $399 for a new 64GB model. The iPhone 4 will sell for $99.
A look at some of the products and services Apple rolled out on Tuesday:
Siri
One of the coolest features of the iPhone 4S is one that's not visible — a talking personal assistant named Siri, which combines voice activation and artificial intelligence.
IPhone owners can hit their home button, and ask about the time and weather, or to make a phone call. A female-sounding voice will respond to your request. Siri also works with reviews website Yelp. Need help, say, in finding Indian restaurants in San Francisco? Ask Siri, and it will sort through a selection of restaurants and pick one for you. Apple purchased Siri nearly a year and a half ago.
