Apple disappointed iPhone lovers Tuesday by not releasing a redesigned smartphone, opting instead to upgrade the iPhone 4 with a more powerful processor and a few new bells and whistles.
For small businesses, the most valuable new feature in the iPhone 4S is voice-recognition software called Siri. Headset-wearing businesspeople driving to an appointment will be able to have email read to them, send text messages and email, and schedule appointments in their calendars without taking their hands off the wheel.
Siri: The iPhone's New Virtual Secretary
Of course, we won't know how well the feature works until the latest iPhone is available Oct. 14. Assuming it works as advertised, Siri could bring added convenience. "From a business perspective, the Siri personal assistant is probably the most important announcement," Van Baker, analyst for market researcher Gartner, says.
On the hardware side, a faster processor is standard with most device upgrades. The new dual-core A5 processor in the iPhone 4S brings faster application performance, longer battery life, and quicker rendering of graphics. The smartphone also comes with a much better camera than the iPhone 4 and can take higher quality video.
Despite the improvements, the announcement brought a tepid response from the invitation-only crowd of analysts, reporters, and tech bloggers at Apple's Cupertino, Calif., headquarters, according to media reports. Investors were also underwhelmed, as Apple stock ended the day on the Nasdaq at $372.50 a share, down $2.10, or 0.56 percent.
An Opportunity for Android?
While its innards have been overhauled, the iPhone 4S on the outside has the same industrial design as its predecessor. Apple's decision to keep the same look as the 15-month-old iPhone 4 is seen as a big negative by some analysts.
"Unfortunately for Apple, this is happening at a time when competitors are aggressively bringing new products to market with superior user experience in the form of wider and better screen, intuitive UIs (user interfaces), and more integrated apps," David McQueen, analyst for telecommunication researcher Informa Telecoms & Media, said in an emailed commentary.
The iPhone 4S does not support the latest fourth-generation, high-speed networks being rolled out by AT&T, Verizon Wireless and Sprint, which is making its debut as an iPhone carrier with the latest smartphone. Instead, the iPhone 4S supports enhanced 3G networks called HSDPA. Apple claims the download speed is up to 14.4 megabits per second, or twice the speed of the iPhone 4. In addition, the latest product supports CDMA and GSM networks, which means people traveling outside the U.S. will be able to make calls.
By skipping on a new design, Apple may have given rivals Samsung and HTC a chance to entice customers with their latest smartphones. "The iPhone is no longer a champion in terms of user experience," Informa analyst Malik Saadi says.
Apparently aware of the danger, Apple dropped the price of the iPhone 4 to $99, with a two-year contract from the carrier. The older iPhone 3GS is free with a contract. While few people are expected to jump at the chance to pickup an old iPhone 3GS, even for free, the lower-priced iPhone 4 could be seen as a good deal. While the older smartphone won't be as fast as the new one, users still get the same operating system, iOS 5, for a much lower price. "That can be pretty appealing," Baker says.
The iPhone 4S will cost $199 with 16 GB of storage, $299 with 32 GB and $399 with 64 GB.
