New Apple iPhone gets muted response

The new iPhone is faster,souped-up and comes with voice recognition and and a better camera as expected,but did little to lift the bar for smartphones.

Investors and Apple fans,who were looking to be blown away by some amazing new surprise,sent the shares down as much as 3 per cent. Its been 16 months and all youve got is an A5 processor in the existing iPhone 4,said BGC Partners analyst Colin Gillis.

The latest iPhone come at a critical juncture as Android phones by Samsung Electronics and other competitors close in on Apples lead. Android phones dominate the US market three years after Google introduced the software.

Some shareholders and analysts were expecting a cameo appearance by Jobs,now chairman. The pancreatic cancer survivor,who handed the reins to Cook in August after taking his third medical leave,has not yet appeared.

Apple launches are some of the hottest events on the tech calendar. Tuesdays Lets talk iPhone show marked Cooks unofficial debut since taking over from Jobs in August.

Apple must sustain the popularity of its iPhone 4,which is more than a year old. Apple sold more than 20 million units in the third quarter,which ended June 25. The iPhone,which accounts for more than 40 per cent of Apples sales,has been a big success since it came out in 2007,making Apple into one of the worlds leading consumer electronics companies.

The company also claims inroads into a corporate market dominated by Research in Motion. It said more than 90 per cent of Fortune 500 companies are testing or using its iPhones and iPads.