Apple disappoints fans with modest iPhone 4 update

Reuters

Change may be hard for some Apple fans. Like the lack of mock turtleneck on CEO Tim Cook.

Newly minted Apple CEO Tim Cook had oversized shoes to fill at the company’s new product launch in Cupertino on Tuesday. He did his best, but like the new product he introduced, he fell a bit short of expectations.

Cook appeared relaxed in his black button-down shirt and jeans and even poked fun at the high stakes of the heavily hyped product launch, his first as spokesman-in-chief since the resignation of Steve Jobs. (“This is my first product launch since being named CEO — I'm sure you didn't know that," he quipped to the crowd.).

But in live coverage that bordered on the comical (“Cook is wearing jeans, but no turtleneck. Do you copy that? NO TURTLENECK!”), reporters who were attending the event and passing tidbits to the outside world expressed feelings ranging from suspense to boredom as the hotly anticipated iPhone 5 failed to appear, and in its place came the iPhone 4S, which appeared to be a rejiggered iPhone 4.

“OK, so what's next.........???” tweeted msnbc.com’s Wilson Rothman, after the iPhone 4S was introduced a full hour into the presentation.

“There is tepid applause from an audience expecting an iPhone 5,” blogged The Wall Street Journal’s Geoffrey Fowler. “Now the big question is: After the iPhone 4S introduction, will there be ‘one more thing’ in the form of an iPhone 5?”

When it became evident that the iPhone 4S was all she wrote (OK, there were actually a few more announcements), shares of Apple fell more than 4.5 percent by the time the event had wrapped, reaching a low of $355.18. Apple’s shares did shoot back up, however, to hit $372.50, just 0.6 percent below Monday's close.

“A lot of people said to themselves, ‘That's it? That's all?’ It felt a little like a concert where the band walks off without doing an encore,” wrote CNET’s David Carnoy about the confab.

But despite the blogosphere’s disappointment, initial feedback was fairly sanguine regarding the phone’s new A5 processor, its innovative voice-recognition software, and Sprint’s commitment to jumping on the iPhone bandwagon  

“They could have called it iPhone 5. There are enough changes,” Morgan Keegan analyst Tavis McCourt told Reuters.  “The voice-recognition service — if it works like reports on it did on stage — is pretty impressive."

"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. "It's a mild disappointment, but they're still going to be selling millions of units." 

Apple announced its latest iPhone Tuesday but it wasn't the completely new redesign that some had anticipated, which left many of the company's loyal followers scratching their heads. NBC's Brian Williams reports.

 

Discuss this post

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Equally drab were Apple's Town Hall, Cook's wardrobe, and the iPhone updates. What does it tell us about Apple's future ?

  • 6 votes
Reply#1 - Tue Oct 4, 2011 6:31 PM EDT

when the man with the vision goes, the bean counters take over

  • 9 votes
#1.1 - Tue Oct 4, 2011 6:48 PM EDT

Pretty much. That is one point to the Android platform is that with multiple hardware makers, it helps drive innovation of the platform overall, although that is rapidly coming at the expense of software fragmentation. We shall see what Android 4.0 will bring us in terms of a unifying platform.

    #1.2 - Tue Oct 4, 2011 7:02 PM EDT

    Apple's future looks a whole lot bleaker today.

    • 1 vote
    #1.3 - Wed Oct 5, 2011 12:37 AM EDT

    I don't understand you guys!!!

    iPhone 4 was flawed. An updated and upgraded version was definitely needed. But technology hasn't advanced enough to make it leaps and bounds above iPhone 4... However, we ALL know that if this new 4S was actually called iPhone 5, people would've been 10Xs more upset about it's lack of innovating technology and capabilities.

    So just deal with it! If you can't stop crying about it, go turncoat and buy an Android phone.

    • 1 vote
    #1.4 - Wed Oct 5, 2011 3:53 AM EDT

    @ Chris W: I think many will be doing just that--jumping to Android.

    • 4 votes
    #1.5 - Wed Oct 5, 2011 5:30 AM EDT

    So the iPhone crowd, some of you are so ADHD that if what you have works fine, and they make it work better, but don't rush a not ready, flawed new product to market just exactly when you want it, you will jump ship? And I thought I had no life.

      #1.6 - Wed Oct 5, 2011 8:35 AM EDT

      It has become even more clearer that the "disappointed" group of Apple iPhone fans are basically the whinny, spoiled set of consumers/reviewers/reporters/analyst that have forgotten that Apple is still a technology corporation that must carefully plan product launches & updates to effectively sustain and increase profit margins and market share (to an extent).

      To some, it seems that Apple bowed to mobile phone carriers, but in the overall scheme, the move for an "updated" iPhone4 was very smart. Some current device owners have pointed out that they will give their iPhone4 to a spouse or friend and purchase a the new iPhone4S.

      The updated iPhone4S is also a nod to current device as well. Apple simply isn't replacing a really good device just maybe a year after it was introduced --- that's true confidence that their older device is still strong in today's market. Look at LG, Motorola, Samsung, and HTC....they seemingly replace their "great" devices almost every 2-3 months...that's a display of very little forethought in their product and less confidence in how competitive their device is in the market. No wonder that can't catch up with the notoriety & cachet of most Apple devices.

        #1.7 - Wed Oct 5, 2011 8:41 AM EDT
        Reply

        Yawn....

        Even the Siri thing isn't new. It's a much better implementation than Google Voice Commands (and we have yet to see how well the Windows Phone 7.5 Mango's voice commands work) but the idea has been around and in use for too long for it to be innovative.

        I guess I'll wait till WWDC next summer to think about an upgrade.

        • 4 votes
        Reply#2 - Tue Oct 4, 2011 6:58 PM EDT

        I have the new Mango upgrade on my HTC Trophy (Verizon) and I can tell you it works great. The only time it had an issue was if there was a lot of background noise (I work in construction) and then it would only mess up similar things like Ryan & Brian. Other than that it works for speech to text, voice calling, web searches.

        • 2 votes
        #2.1 - Tue Oct 4, 2011 7:43 PM EDT
        Reply

        Apple usually sells the sizzle, seems like today they just sold bacon.

        • 7 votes
        Reply#3 - Tue Oct 4, 2011 7:00 PM EDT

        I agree, Chris. I was thinking that whatever they'd announce today would at least have 4G. But nope, looks like most of the improvements are software-based.

          #3.1 - Tue Oct 4, 2011 11:01 PM EDT

          I like bacon.

            #3.2 - Wed Oct 5, 2011 1:50 PM EDT
            Reply

            oh waah! I think it's great! Sure, I'll buy one of these and then an iPhone 5 when it comes out - but what ever! It has some wonderful new things and I think the Siri is awesome (Google Voice Commands or not)!

            • 2 votes
            Reply#4 - Tue Oct 4, 2011 7:04 PM EDT

            I was waiting to hear the news before purchasing a new phone, I thought i would be blown away and my new phone decision would be cut and dry. I am not blown away and now I will have to take a good look at droid type products.

            • 1 vote
            #4.1 - Tue Oct 4, 2011 7:53 PM EDT
            Reply

            What's wrong with this announcement. Seems the expectations were set by others, not Apple. You can't come out with a new wizz bang product that revolutionizes a category every time. This is a fine product with lots of upside.

            • 5 votes
            Reply#5 - Tue Oct 4, 2011 7:10 PM EDT

            When everyone else is getting accustomed to at least a 4" screen, you better come out with a product that can compete even if its not a full update on software. I was willing to try it if it was a 4" screen like what I have now. Im not going to move backward in technology.

            • 2 votes
            #5.1 - Tue Oct 4, 2011 7:28 PM EDT

            In a year and a half, if you don't you lose customers period.

              #5.2 - Tue Oct 4, 2011 11:30 PM EDT

              I guess what's wrong is Apple mislead the Rumor Mill with its iOS5 (OMG!). They should've simply said that it will be an improved iPhone4. Just like there was the 3GS.

                #5.3 - Wed Oct 5, 2011 3:59 AM EDT

                Right-on donklos!, it was stated that it would be a "4S" all along, I guess it wasn't sensational enough, so most chose to believe the rumor mills instead. The next iPhone will be a "5" followed by a "5S", follow the bouncing ball...

                • 1 vote
                #5.4 - Wed Oct 5, 2011 7:09 AM EDT
                Reply

                When will they offer a "made-in-America" model?

                • 3 votes
                Reply#6 - Tue Oct 4, 2011 7:11 PM EDT

                Made in America! That would be great!

                • 2 votes
                #6.1 - Tue Oct 4, 2011 7:18 PM EDT

                My only beef with Apple is that they have become a great vehicle for China's constant program to extract all the wealth from the West whilst they franctically build up their own middle class till they don't need the west anymore and they can spit out the ruins of our civilization proudly proclaiming themselves as the new world leaders.

                • 3 votes
                #6.2 - Tue Oct 4, 2011 7:24 PM EDT

                Are you willing to pay three or four times the price of the iPhone if it's made in USA?

                  #6.3 - Wed Oct 5, 2011 12:43 AM EDT

                  " ... Are you willing to pay three or four times the price of the iPhone if it's made in USA?... "

                  Why yes. Yes I am.

                  And secondly, it would not be 3 or 4 times the price. But Apple would have to make a bit less money on each one. There is/will be a free iPhone with a contract. Apple loosing money on it? Not very damned likely.

                  Have any more BS questions/comments like your last one?

                  • 2 votes
                  #6.4 - Wed Oct 5, 2011 1:58 AM EDT

                  They're probably the only ones that could do it at this point. Its no longer about mass manufacturing. It's mass customization. Apple just needs to bring the robots back home, download the program and tell it to start building. With China's lack of respect for intellectual property, I wouldn't be surprised if this actually did happen.

                  • 1 vote
                  #6.5 - Wed Oct 5, 2011 4:29 AM EDT

                  The price of products does not fall when moved to China. Typically, tools for example see slight price increases though they are lighter in weight and in the case of electric tools less powerful. All the cost savings from slave wages go into the pockets of executives whom have never done an honest day's work in their lives, and is well shielded from Uncle Sam, in other words, you pay for it 3 times, once you throw in the phony exchange rates.

                  • 1 vote
                  #6.6 - Wed Oct 5, 2011 8:40 AM EDT
                  Reply

                  I think it is awesome and I bet I will be in line with many other people who also think its great. The company is a master at squeezing $'s out of consumers and this is no exception. They took a great product, that they spent a bundle on in R&D, and made it better and continued its life further without having to spend as much on R&D that a whole new phone would require. From a business perspective, I am sure they increased their already incredible margins. Buy their stock on the pull back that happened when the silly analysts didn't receive what they had been speculating about. Once again Apple kept it under wraps. Good for them.

                  • 1 vote
                  Reply#7 - Tue Oct 4, 2011 7:17 PM EDT

                  The company is a master at squeezing $'s out of consumers

                  Wow. I can tell from your post.

                    #7.1 - Tue Oct 4, 2011 9:47 PM EDT
                    Reply

                    I'll take the android. Iphone is what started smart phones. And then came the android, Exact same as the Iphone. But way better.

                    • 1 vote
                    Reply#8 - Tue Oct 4, 2011 7:17 PM EDT

                    LOL! Exactly the same if you don't mind a more klunky less refined knock-off.

                    • 6 votes
                    #8.1 - Tue Oct 4, 2011 7:21 PM EDT

                    you mean like this iPhone?

                      #8.2 - Wed Oct 5, 2011 2:00 AM EDT
                      Reply

                      While there were hyped up expectations, the iPhone 4S is a much bigger leap than the iPhone 3GS was over the iPhone 3G. Steve Jobs was the CEO through that transition remember. Quite frankly, the iPhone 4 case is so nice I was totally hoping they wouldn't change it and screw it up. If they made it slimmer I would rather that they kept the current size by increasing the battery life (which it seems they did). If they made it larger for a bigger screen, I would have hoped that they would keep a model that is the current size - which is ideal.  What might I have wanted to see? Well, a screen that took up more of the available real estate would be nice - but keep the phone the size it is. The samsung has a bigger screen, but that is also a negative. The phone is so large as to be cumbersome. The iPhone is too close to ideal to mess with its design too radically.

                      • 2 votes
                      Reply#9 - Tue Oct 4, 2011 7:19 PM EDT

                      Patience young'uns, time will make you rich if you own the stock.

                        Reply#10 - Tue Oct 4, 2011 7:19 PM EDT

                        I own quite a lot of Apple stock and this makes me want to sell it. In fact, while the major averages all moved up today, Apple moved down. The market sees this as a big dissapointment. Apple was over $ 420 a couple of weeks ago and it got into the mid $ 350's today.

                        The market is beginning to bail out of Apple.

                          #10.1 - Tue Oct 4, 2011 8:02 PM EDT

                          I actually bought Apple stock today when it was in the 350's and I'm very happy that I did, since it closed at 372.50. I strongly suggest you reconsider your strategy of bailing out of the stock based on today's announcement. What's really changed about the company's fundamentals? If the decision to release a 4GS is such a poor one, why did the stock only close down two points? Your observation that "the market is beginning to bail out of Apple" is ridiculously premature.

                            #10.2 - Tue Oct 4, 2011 8:39 PM EDT
                            Reply

                            Only MSBC (or should I say Microsoft) would make it sound like the majority of people are disappointed. Majority disappointment is reserved for products like the Zune... isn't that right Microsoft?

                            Regarding Apple products - if all you ever expect is to be dazzled then go be disappointed. Your no better then a gnat or at least your attention span is equal to a gnat. For every home run Apple connects with they have triples, doubles, singles and some walks, and yes, sometimes they even strike out. If you are a critic then I say "get real" go buy the latest and greatest from that innovation company... Microsoft -hahahahahahahahahahahahahahahahahahahahahahahahahahahahaha!

                            • 1 vote
                            Reply#11 - Tue Oct 4, 2011 7:19 PM EDT

                            " ... buy the latest and greatest from that innovation company... Microsoft ... "

                            Only an idiot would do that. Or an unhappy iPhone owner. The rest would go with Android. Like the majority of the World already does. With Apple, which is taking after Microsoft, if you can't compete with product, you sue. And seeing how Apple IS suing over Andriod, they are admitting that they can't compete.

                            As for tablets? The only thing keeping non-Apple tablets from kicking the iPads arse, is that it's not an Apple. Better, faster, more memory, hard drive space and ports. All Apple can do it to try to keep up. And as with the iPhone, not doing very well at it either.

                            "But it's not an iPad. I want am iPad. I want , I want I WANT!!!!!" Whineeeeeeeeeeeee!

                              #11.1 - Wed Oct 5, 2011 2:12 AM EDT
                              Reply

                              Damn I was hoping the new phone would make my coffee! RATS!

                                Reply#12 - Tue Oct 4, 2011 7:22 PM EDT

                                If you own the stock, in a few years you will be able to afford to have someone make your coffee.

                                  #12.1 - Tue Oct 4, 2011 7:34 PM EDT
                                  Reply

                                  .

                                    Reply#13 - Tue Oct 4, 2011 7:42 PM EDT

                                    IKotex 5 is next.

                                      Reply#14 - Tue Oct 4, 2011 7:50 PM EDT

                                      Totally Agree! I think the iOS5 & the cloud hook up Is especially strong and I believe Apple wants to get that right Before they change the hardware.

                                      As to the "author" of this article. Nothing about the annoucement was 'comical'. What planet do you live on?

                                        Reply#15 - Tue Oct 4, 2011 7:55 PM EDT

                                        I was out working all day and wondering what great things were being announced by Apple. I got home and saw what was announced and it was like finding a turd in the punchbowl.

                                        What a dissapointment. No change in industrial design, no new unique features, not even a new model number! I have an Android phone and I was waiting to see if the iPhone 5 would give me a good reason to switch as my contract is soon up. This confirms that I will stay with the Android platform for a while. And if I get a new Android to replace my old one; which seems likely, then it will be two years until I should consider an iPhone again.

                                        The Apple Fanboys will be quick to claim that the iPhone 4 is better anyway, but I have to tell you, having tried the iPhone 4 I have been underwhelmed. I was hoping the iPhone 5 would be a be a big improvement, but the 4S is no big thing. I am already using a Global phone that supports both GSM and CDMA, has a big clear display and a fast 1.2 GHz CPU. My Android phoen has Flash, thank you very much, and the apps are cheaper. The HI is fine and the OS works great.

                                        But I was sure that Aoole would come up with a winner that would leapfrog the Androids and have me drooling. Let me tell you, this ain't it.

                                          Reply#16 - Tue Oct 4, 2011 7:57 PM EDT

                                          Hmm, so the iPhone 4S is seven times faster than its predecessor, despite having the same clock speed of 1GHz. So can you really point out that your 1.2 GHz CPU is faster than the 1.0 GHz CPU in the iPhone 4s. You have no basis for your statement. Clock speed alone does not determine performance.

                                          Yes, the Android phone has a bigger display, but it's lower resolution. I would rather keep the smaller phone as its a better size in my pocket than the klunky android phones. Bigger doesn't make a phone better.

                                          And when it comes to Flash, I have just taken the darn thing off my PC and am going to have to live without it. I cannot work (in my Windows 7 PC) if Flash freezes my computer all the time. After 5 freezes today and after having dealt with 1 or 2 freezes a day since Windows 7 came out, I don't want anything ot do with Adobe. I'll live without them and their awful software.

                                            #16.1 - Tue Oct 4, 2011 8:27 PM EDT

                                            @RichF

                                            You are just a troll who has no interest in sharing an honest opinion. A few posts ago you were talking about how much Apple stock you own. Now, all of a sudden you share this stupid story about you were working out all day and just happened to see the announcement. Why two separate posts?

                                              #16.2 - Tue Oct 4, 2011 8:43 PM EDT
                                              Reply

                                              Jeez... everyone relax with the doom and gloom here.

                                              How many version of the iPhone 3 were released before the iPhone 4? Like three? Consumers and the media are completely responsible for ginning up anticipation for no reason whatsoever.

                                              If Apple did anything wrong, it was managing expectations. They're a victim of their own desire for total secrecy around their product launches. When they heard the frenzy that was brewing for an iPhone 5, the smart business move would have been to make known in advance that there was not going to be a brand-new phone. Yeah there wouldn't have been as much excitement leading up to todays announcement, but there also wouldn't be the disappointment (and stock dip) afterwards.

                                              • 1 vote
                                              Reply#17 - Tue Oct 4, 2011 7:58 PM EDT

                                              Samsung will be benefiting in a major way from the Apple(ex?) consumer backlash - I know Samsung will be getting my money this time round. And you know what the deal breaker is?..screen size. I want a 4.2 - 4.5" screen. Tired of squinting at that 3.5" display. The Galaxy S2 LTE (for European/Australian markets) has a lovely big screen, 1.5ghz processor, sd card storage and unfettered access for apps.

                                              Eat a bag of 'em, Apple.....tired of waiting. Yeah they never mentioned what was coming but they surely played on the buildup..now everyone's disappointed, Apple have a lot of repair work on the brand to complete.

                                                Reply#18 - Tue Oct 4, 2011 8:06 PM EDT

                                                Thanks for that "uniquely biased" opinion. The product hasn't even shipped and the media is already blasting away at it.

                                                Whatever happened to the days of delivering a news story without injecting bias? Aren't ethics in journalism still being taught? (Apparently not.)

                                                  Reply#19 - Tue Oct 4, 2011 8:06 PM EDT

                                                  Journalists today seem to think they have the right to tell us how to live and act. Tell me the facts. I'm a big boy I can figure it out.

                                                  And for Leonard Rockstein they didn't build up anything. It's the same media, journalists, guessing and making you think they know what they are talking about. Apple is very hush on what is coming. Old expression. No anticipation, no disappointments. Wait to see and then make your own opinion. to rely on the media is to be a fool.

                                                    #19.1 - Tue Oct 4, 2011 8:16 PM EDT

                                                    " ... Journalists today seem to think they have the right to tell us how to live and act. ... "

                                                    Um, you mean kind of like Apple does?

                                                      #19.2 - Wed Oct 5, 2011 2:18 AM EDT
                                                      Reply

                                                      I was sort of impressed with the natural voice recognition - something that has eluded every other digital device since it was prophesied about twenty years ago.

                                                      This is coming from someone that despises Apple and their sanctimonious fanboys.

                                                        Reply#20 - Tue Oct 4, 2011 8:09 PM EDT

                                                        I am happy upgrading the iOS on the 12th and waiting for the iPhone 5. My phone plan is good until Feb 18th anyway. I have been listening to different podcasts and I don't think people will be as disappointed at all. the case is the same but the internals are a marked improvement. Faster chip, better camera, etc. They could have called it a 5 and who would know. the next phone could be the iPhone 4S-1. Who cares it's only a number. Check the total stats then we'll see.

                                                          Reply#21 - Tue Oct 4, 2011 8:10 PM EDT

                                                          siri has been a stand alone app for a while now...before they were purchased by apple. it was free and works great. cant wait to see the entire phone run off it. but ios updates dont need million dollar plus aunche conferences.....

                                                          • 1 vote
                                                          Reply#22 - Tue Oct 4, 2011 8:14 PM EDT

                                                          Great googlymoogly PEOPLE... it's just a freaking PHONE!  If this is what your life revolves around, I think you need to get yourself a date or something!

                                                          • 2 votes
                                                          Reply#23 - Tue Oct 4, 2011 8:25 PM EDT
                                                          Reply

                                                          If Apple had called this the iphone 5, the story would have been reported differently. What Apple did is disappoint people with the model designation.

                                                            Reply#24 - Tue Oct 4, 2011 8:26 PM EDT

                                                            So, what's your point?

                                                              #24.1 - Tue Oct 4, 2011 8:30 PM EDT

                                                              That a major part of the disappointment people are feeling is related to it being '4S' not '5'. It seems to me to be a psychological reaction. If Apple had called this the iPhone 5 and touted the new processor I wonder if the reaction would have been different. It reminds me of the amp that goes to 11 in Spinal Tap. It's cooler because it's a higher number.

                                                              • 3 votes
                                                              #24.2 - Tue Oct 4, 2011 8:41 PM EDT
                                                              Reply

                                                              Tim Cook can just shove it... No more Apple crap for me.

                                                                Reply#25 - Tue Oct 4, 2011 8:26 PM EDT
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