Apple Ready to Talk iPhone at Event Tuesday
By JOHN LETZING
Apple Inc. is expected to unveil Tuesday the newest version of a device that has helped bolster the company's fortunes more than any other in recent years: the iPhone.
General expectations for what has widely and unofficially been dubbed the iPhone 5 are for a slimmer device with a larger touch screen, an improved camera and a relatively speedy chip of the same variety found in the current version of Apple's iPad tablet. There also has been some speculation about possible voice-command capability.
The price is expected to remain consistent with the $199 to $299 charged for an iPhone 4, depending on the amount of memory included.
An Apple spokeswoman declined to comment ahead of the event.
Former Apple Chief Executive Steve Jobs unveiled the current version of the iPhone at the company's developers' conference in June 2010. It wasn't immediately clear whether Mr. Jobs, who stepped aside in August as a result of health issues, would attend the event, which is occurring at Apple's Silicon Valley headquarters.
Mr. Jobs, who went on medical leave in January for an undisclosed illness, has been replaced by current Chief Executive Tim Cook. Mr. Cook's performance Tuesday--should he stand in for his predecessor Jobs and lead the keynote address--will also come under intense scrutiny.
Though known generally to have a more reserved demeanor than Mr. Jobs, Mr. Cook may yet prove to be a showman of the same order, Sterne Agee & Leach Inc. analyst Shaw Wu advised clients in a recent research note. The analyst added: "We don't think Steve Jobs picked Tim without him having somewhat of a 'vision thing'."
In keeping with the Cupertino, Calif., technology giant's secretive ways, Apple distributed last week a vague invitation for the event, with the heading, "Let's talk iPhone."
Analysts have sought to decipher Apple's invitation, and divine what the company has in store with the iPhone 5. Wu wrote in his research note that the invite featured a number "1," perhaps signaling that only one new device will be unveiled.
The new iPhone is also expected to be available from Sprint Nextel Corp. Current versions of the device have only been available in the U.S. on the networks of AT&T Inc. and Verizon Wireless, which is owned by Verizon Communications Inc. and Vodafone Group PLC.
Peter Misek, an analyst with Jefferies & Co., has projected that the new iPhone also will have an Apple A5 processor, the same chip found in Apple's iPad 2 tablet, along with an improved camera, slightly larger screen and a somewhat slimmer body design. The current iPhone includes an Apple A4 chip.
In addition, Apple is seen possibly putting voice-command functions in the new phone, thanks to the company's purchase last year of Siri Inc., which had developed a voice-activated personal assistant.
Carriers should be offering the new device by the middle of this month, Misek suggested. The new phone isn't expected to be designed for faster fourth-generation wireless networks.
The first iPhone was unveiled in 2007. Since then, the device has set the tone for an entire industry, with its expansive touch screen and streamlined wafer shape becoming a de facto standard. Analysts are projecting that Apple will sell as many as 50 million iPhones this year.
For the quarter ended in June, Apple reported iPhone-related revenue of $20.3 billion, a large portion of the company's total revenue of $28.6 billion, and a sharp increase over the $8.4 billion in iPhone-related revenue in the same period a year earlier.
The company now faces tougher competition from smartphones using Google Inc.'s Android software that also feature full-screen touch displays and access to thousands of apps. The U.S. market share for Android phones is larger than that for the iPhone, 43% versus 28%, according to data tracker Nielsen. The iPhone, however, remains the most popular individual smartphone on the market, as Apple has sold over 128 million phones since 2007.
