There has been mixed reaction from analysts to the latest iPhone, announced by Apple yesterday.
Apple CEO Steve Jobs showed off a redesigned $199 "iPhone 4" that is a quarter slimmer than the current handset. The device boasts a higher quality screen and better battery life, video chat via Wi-Fi, and a gyroscope sensor for improved gaming.
The device is expected to go on sale in Ireland in July although no further details are available regarding pricing.
Mr Jobs told a media and industry audience at Apple's annual developers' conference in San Francisco yesterday that the latest phone will be available from June 24th in five countries, expanding to 18 by July and 88 by September in the quickest-ever international roll-out for an iPhone.
Many of the innovations on the iPhone 4 had been expected, and industry watchers say it is becoming more difficult to stand out in a crowded field.
Google's Android operating system -- used by many brands from Motorola and HTC to Samsung Electronics and Dell -- poses the biggest threat, analysts say.
The iPhone's global share surged to more than 15 per cent in the first quarter, making it the third best seller in smartphones. Phones based on Android ranked Number 4 with close to 10 per cent of the market, a huge increase from the previous year and gaining, Gartner data shows.
"There was nothing earth-shattering about what we saw or heard today," said CCS insight analyst John Jackson after the iPhone launch. "All of that said, you can't think it will be anything other than a phenomenal success," he added.
Hudson Square Research analyst Daniel Ernst called the new device "more evolutionary than revolutionary."
"It doesn't completely change the paradigm for the iPhone," he said.
Still, Mr Jobs argued the fourth-generation iPhone -- which for the first time sports the same A4 processor that powers the iPad -- marks the biggest technological leap since the first model debuted and set the standard.
"This is beyond a doubt the most precise thing and one of the most beautiful things we've ever made," he said.
Apple's CEO displayed all of his famed skills as a pitchman, mixing wry wit with an obvious passion for Apple's products. He even joked about the iPhone prototype that fell into the hands of Gizmodo, which spilled many of its secrets.
Although the iPhone remains Apple's main growth driver, the iPad has stolen some of its thunder. With the early success of the tablet computer, Apple's stock has gained around 20 per cent this year, overtaking Microsoft to become the world's most valuable technology company.
Apple's shares fell 2 per cent to close at $250.94 on the Nasdaq yesterday. Google shares fell 2.7 per cent, while Research in Motion, the company behind the Blackberry devices, dropped 5.2 per cent.
The iPhone -- introduced in 2007 with the touchscreen, on-demand application template now adopted by its rivals -- remains the gold standard in the fast-growing smartphone market.
Apple sold a record 8.75 million iPhones in its latest quarter, accounting for 40 per cent of its revenue. With margins estimated at 60 per cent, it is Apple's prime growth driver, helping margins climb to a record 41.7 per cent in the most recent quarter from 34 per cent in fiscal 2007.
Only last year, Research in Motion was seen as Apple's top rival. While the company's BlackBerry remains the smartphone of choice for many corporations that need fast email, Apple has made strides in that market.
Analysts said the latest iPhone incorporates new security features obviously targeted at business customers.
Apple's prime target remains the consumer. But there, new competitors are designing high-powered handsets based on Google's Android software, offering fast, web-surfing and video-enabled phones with access to thousands of apps.
Interpret analyst Michael Gartenberg said that the newest iPhone will manage to exert pressure on Google and rival handset-makers.
"It's much more complete, much more adept in terms of the polish and delivery and it's going to force the other competitors to up their game," he said.
Reuters