Tech Geeks

SAN FRANCISCO -- The iPhone 5 is finally here.

After months of rampant rumors and hype, Apple debuted its latest smartphone Wednesday in front of a packed house at the Yerba Buena Center for the Arts, claiming it is the world’s thinnest.

The iPhone 5 features a larger screen and weighs 112 grams, or about 4 ounces, which is 20% lighter than the iPhone 4S. It is also 18% thinner, Apple's marketing chief Phil Schiller said. It has an improved A6 processor that is twice as fast as its predecessor, high-speed 4G LTE connectivity and a widescreen aspect ratio.

Siri got a makeover as well, and can now tell users the scores of sports games and post status updates to Facebook.Apple has also improved the device's battery life and updated both of its cameras, giving its front camera 720p HD video. The company also announced a smaller dock connector for the device and a new cable charger named Lightning that is 80% smaller than its predecessor.

The iPhone 5's dock connector has also been made smaller.

The device will be available in black and white. It will be available for $199, $299 and $399 for 16GB, 32GB and 64GB models, respectively. Pre-orders begin Friday and the iPhone 5 will launch Sept. 21.

The company said iOS 6 will arrive as an update for many of its iOS devices Sept. 19.

The invitation-only Apple event, which began at 10 a.m. Pacific time, is still ongoing. Cook is expected to announce upgrades to other products, including the iPod, soon, so check back for updates.

The launch of a new iPhone will mean huge sales for the Cupertino, Calif., tech giant.

Since the original iPhone debuted in 2007, Apple has sold more than 244 million units and has been credited with upending the smartphone industry.

Sales of iPhones and related products and services accounted for 46% of Apple’s revenue in the most recent quarter and 58% in the previous quarter. In its last fiscal year, the company reported revenue of $47.1 billion from sales of iPhones and related product and services, an 87% increase over the year before.

Analysts estimate the iPhone has a gross margin of about 50%, making it an extremely profitable device for the world's most valuable company. Nearly two-thirds of Apple's profits come from the iPhone.

With sales of Apple's iPhone 4S and earlier models dropping off in recent months, analysts believe there is huge pent-up demand for the iPhone 5. Many have predicted that Apple could sell up to 10 million iPhones in the first 10 days, and up to 50 million in the holiday quarter.

CUPERTINO, Calif. (Reuters) - Apple Inc's newest iPhone left Wall Street and fans wishing for more than a souped-up version of last year's device, at a time when rival smartphone makers are nipping at its heels.

At his first major product launch since being crowned CEO, Tim Cook ceded the critical iPhone presentation to another executive, and failed to generate the same level of excitement and buzz that predecessor Steve Jobs was famous for.

The new iPhone 4S is identical in form to the previous model, disappointing fans who had hoped for a thinner, bigger-screened design. Apple's shares fell as much as 5 percent, before recovering with the broader market to close down 0.6 percent.

But analysts say the new device sported some new features, such as voice commands, to draw in consumers and is still going to be a big draw this holiday season, particularly as the phone is now available on Sprint's network in addition to AT&T and Verizon Wireless.

It remains to be seen whether the iPhone 4S can stem market share gains by phones running GoogleInc's Android software. Samsung Electronics, notably, is growing global shipments several times faster than Apple and is now estimated at within a hair's breadth of catching up in worldwide market share.

"It's been 16 months and all you've got is an A5 processor in the existing iPhone 4," BGC Partners' analyst Colin Gillis said of the new Apple phone. "It's a mild disappointment, but they're still going to be selling millions of units."

The iPhone 4S's voice commands -- for sending messages, searching for stock prices and other applications -- caught the attention of several analysts who argued it could profoundly change the user experience.

Known as "Siri", the technology already exists on Android but experts say Apple's integration was more fluid -- a hallmark of the company.

Whether such high-tech wizardry is enough to make the iPhone 4S a must-have in consumers' eyes and set it apart from the competition, remains to be seen.

"It's not clear that Siri is sufficient to make or break a purchase decision," said John Jackson, an analyst at CCS Insight. "It's a better mousetrap. History tells us users don't use this technology in great numbers."

INTENSIFYING COMPETITION

While the iPhone 4S sports many of the features leaked in tech blogs before Tuesday, it lacked the "wow" factor that some were hoping for to sustain the popularity of the brand.

In some ways, Apple may have been a victim of past success. Product launches by Jobs, now chairman, had been some of the hottest events on the tech calendar.

The iPhone, which accounts for more than 40 percent of Apple's sales, has been a success since it came out in 2007, making Apple one of the world's top electronics companies.

Cook said Apple has made significant inroads into the corporate market, with more than 90 percent of Fortune 500 companies testing or using its iPhones and iPads. The news sent shares of BlackBerry maker RIM down nearly 3 percent at one point. Google shares finished 1.3 percent higher.

The iPhone 4S will cost $199 with pre-orders starting Oct. 7. Apple also cut the price of the older iPhone 4 to $99, and said an even older "3GS" model will be available for free to customers who sign a long-term contract.

That could help Apple expand into developing markets such as Asia, Samsung's backyard. And it might allow Apple to take a bite out of a low-end market it had eschewed.

"Apple is hitting Nokia when it's vulnerable. How many billions of people in emerging markets would love to have an iPhone? These are a growing demographic," said YCMNet Advisors CEO Michael Yoshikami.

Tuesday's iPhone event took place at Apple Central -- the same venue where the iPod was introduced years ago -- versus the larger, splashier venues of more recent choice, such as downtown San Francisco's Moscone center.

The event, though as usual choreographed to a tee, lacked the oomph and pizazz of Apple events in years past and sorely missed the star power that Jobs brought to the unveilings.

Heading into the event, many on Wall Street had questioned Cook's ability to lead the company as Jobs had. In terms of stage presence, Jobs was a tough act to follow.

While it did little to alleviate concerns about whether the company would stay a creative force to be reckoned with without its founder and visionary at the helm, analysts say Tuesday's proceedings hinted at Apple's new team-based approach.

"What he did is let the team shine through," said Forrester Research analyst Frank Gillett. "What we may see is a somewhat different style, and frankly a healthy style that says: Look, this is a team that works together, there's a deep bench, it's not just one person."

Twitter users were not impressed with the phone, though.

"Please note I will be selling some 'S' stickers for $0.99 so iPhone 4 owners have a cheaper upgrade option," wrote HAL9000 on Twitter.

Tomlinsonr tweeted, "I'll have a double helping of 'meh' with a side of 'whatever'."

The latest version of the iPhone comes as the economy slows and competition intensifies. People activate more than 550,000 Android-based devices -- including tablets -- each day.

Nielsen data shows the iPhone was No. 2 in the United States with a 28 percent market share, with Android at 43 percent.

Globally, iPhone shipments rose 9.1 percent in the second quarter while Nokia's plummeted more than 30 percent, handing the top spot to Apple with a market share of 18.4 percent, according to IHS iSuppli. Samsung, whose shipments grew faster, is coming on strong with a market share of 17.8 percent.

Despite disappointment online, analysts said the phone is superior to many rival offerings.

"Voice recognition has been on Google and Blackberry devices for years, but Apple will make it much more usable," said Morgan Keegan analyst Tavis McCourt.

(Additional reporting by Noel Randewich, Alistair Barr and Sarah McBride in San Francisco, and Sinead Carew and Liana B. Baker in New York. Writing by Edwin Chan. Editing by Phil Berlowitz, Robert MacMillan and Bernard Orr)

He was deemed the heart and soul of a company that rivals Exxon Mobil as the most valuable in America.

"Steve's brilliance, passion and energy were the source of countless innovations that enrich and improve all of our lives. The world is immeasurably better because of Steve," Apple said in a statement.

"His greatest love was for his wife, Laurene, and his family. Our hearts go out to them and to all who were touched by his extraordinary gifts."

Apple paid homage to their visionary leader by changing their website to a big black-and-white photograph of him with the caption "Steve Jobs: 1955-2011." The flags outside the company's headquarters at 1 Infinite Loop flew at half mast.

Jobs' health had been a controversial topic for years and his battle with a rare form of pancreatic cancer a deep concern to Apple fans and investors.

In past years, even board members have confided to friends their concern that Jobs, in his quest for privacy, was not being forthcoming enough with directors about the true condition of his health.

Now, despite much investor confidence in Cook, who has stood in for his boss during three leaves of absence, there remain concerns about whether Apple would stay a creative force to be reckoned with in the longer term without its visionary.

Jobs died one day after the consumer electronics powerhouse unveiled its latest iPhone, the gadget that transformed mobile communications and catapulted Apple to the highest echelons of the tech world.

His death triggered an immediate outpouring of sympathy.

"The world rarely sees someone who has had the profound impact Steve has had, the effects of which will be felt for many generations to come," Gates said. "For those of us lucky enough to get to work with him, it's been an insanely great honor. I will miss Steve immensely."

Outside an Apple store in New York, mourners laid candles, bouquets of flowers, an apple and an iPod Touch in a makeshift memorial.

"I think half the world found out about his death on an Apple device," said Robbie Sokolowsky, 32, an employee for an online marketing company, who lit a candle outside the store.

Cook said in a statement that Apple planned to hold a celebration of Jobs' life for employees "soon".

Apple, NeXT, iPhone A college dropout, Buddhist and son of adoptive parents, Jobs started Apple Computer with friend Steve Wozniak in 1976. The company soon introduced the Apple 1 computer.

But it was the Apple II that became a huge success and gave Apple its position as a critical player in the then-nascent PC industry, culminating in a 1980 initial public offering that made Jobs a multimillionaire.

Despite the subsequent success of the Macintosh computer, Jobs' relationship with top management and the board soured. The company removed most of his powers and then in 1985 he was fired.

Apple's fortunes waned after that. However, its purchase of NeXT -- the computer company Jobs founded after leaving Apple -- in 1997 brought him back into the fold. Later that year, he became interim CEO and in 2000, the company dropped "interim" from his title.

Along the way Jobs also had managed to revolutionize computer animation with his other company, Pixar, but it was the iPhone in 2007 that secured his legacy in the annals of modern technology history.

Forbes estimates Jobs' net worth at $6.1 billion in 2010, placing him in 42nd place on the list of America's richest. It was not immediately known how his estate would be handled.

Six years ago, Jobs had talked about how a sense of his mortality was a major driver behind that vision.

"Remembering that I'll be dead soon is the most important tool I've ever encountered to help me make the big choices in life," Jobs said during a Stanford commencement ceremony in 2005.

"Because almost everything -- all external expectations, all pride, all fear of embarrassment or failure -- these things just fall away in the face of death, leaving only what is truly important."

"Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart."