Note: Continued AT&T exclusivity and lack of 4G support raise questions about whether Steve Jobs' newest smartphone can keep up with the competition.
Apple shares were down for the second straight day Tuesday, as investors weighed the impact of the new iPhone 4 on the company's fortunes in the smartphone market.
Shares of the company were off 1.4%, to $247.43, in mid-afternoon trading, after closing down 2% Monday--hours after Apple CEO Steve Jobs launched iPhone 4.
The phone features a number of enhancements over its predecessor, the iPhone 3GS, including higher screen resolution (960 x 640 pixel technology dubbed Retina Display), a front-facing camera for video chats, and a longer lasting battery that affords 40% more talk time. It's also 24% thinner.
iPhone 4 also includes a 3-axis gyro and a sleek new glass and stainless steel case. "iPhone 4 is the biggest leap since the original iPhone," said Jobs.
But investors may be concerned that Apple failed to address some big shortcomings with iPhone 4. Most significantly, there was no word from the company as to whether it intends to make the device available to carriers other than AT&T, such as Verizon.
Apple and AT&T have received countless complaints about AT&T's network performance, and its tendency to drop calls in key urban markets like New York City and San Francisco.
And, despite speculation to the contrary, the iPhone 4 does not support 4G data transmission, which is up to ten-times faster than 3G. That could be a problem for Apple, as rival HTC last week released the Google Android-powered Evo for use on Sprint's 4G network.
"In all, we see the iPhone 4 announcement meeting expectations and the lack of other announcements slightly disappointing," wrote analysts at Macquarie Group, in a research note. Time will tell whether consumers are willing to put aside such concerns in exchange for the cachet that derives from carrying around the latest product from Cupertino in their pockets.
The new phone is priced at $199 for the 16GB model, and $299 for the 32GB model, based on a two-year contract. iPhone 4 is available starting June 24 in the U.S., France, Germany, Japan, and the U.K. The preorder period begins June 15.
