Apple’s iPhone 4S underwhelms when iPhone 5 was expected

iThink people wanted the iPhone 5.

Apple unveiled its newest iPhone model on Tuesday – the iPhone 4S. The phone closely resembles the iPhone 4, but features an updated processor and camera. When revealed at Apple headquarters, it was met with a less-than-enthusiastic response as many were likely expecting the iPhone 5.

The new phone will feature the A5 chip, used in the iPad 2 and an 8-megapixel camera. The phone will also feature a new antenna design, and features the ability to transfer between two antennas to improve call quality. It will be priced at $199, $299 and $399 for the 16GB, 32GB and 64GB models, respectively, and will be available in black or white. Separately, CEO Tim Cook also announced some software updates, including its iOS5 operating system, which will be available for download on October 12.

iCloud was announced, a free service for data storage that will allow users to back up and sync data between mobile devices and computers, along with iTunes Match which will allow users to remotely access music they place on Apple’s servers for $24.99 per year.

The conference also featured two pieces of news that erased Research In Motion’s gains from earlier in the day. iOS5 will contain iMessenger, which will compete with BlackBerry’s BBM and will be “pushed to all devices” according to Scott Forstall, Senior VP of iPhone Software. On top of iMessenger, management noted that 93% of Fortune 500 companies have either deployed, or are evaluating the iPhone for corporate use, as Apple moves out of the personal market and into RIM’s wheelhouse, the corporate market.

Apple (AAPL : NASDAQ : US$372.50), Net Change: -2.10, % Change: -0.56%, Volume: 43,774,415
Research In Motion (RIMM : NASDAQ : US$21.00), Net Change: 0.50, % Change: 2.44%, Volume: 43,661,242
Sprint Nextel (S : NYSE : US$2.86), Net Change: 0.13, % Change: 4.76%, Volume: 163,548,583

Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.

For disclosures of any equities mentioned here please see: http://www.canaccordgenuity.com/en/ODD/pages/disclosures.aspx

About the Author

Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.

For disclosures of any equities mentioned here please see: http://www.canaccordgenuity.com/en/ODD/pages/disclosures.aspx.

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