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Edition: U.S. Article Comments (7) Slideshow Video Save Email Print Reprints Most Popular Most Shared Afghan troops fear life after foreign pullout 07 Jun 2010 Apple unveils iPhone 4 to fend off Google | Video 07 Jun 2010 Obama has strong words as Gulf spill spreads | Video 1:19am EDT U.S. military holds soldier in classified video leak 07 Jun 2010 Helen Thomas retires after Israel remarks 07 Jun 2010 Circumcision may prevent sex-related penis injuries 04 Jun 2010 Israeli patrol kills four militants in diving suits 07 Jun 2010 Bernanke says Europe committed to euro's survival 07 Jun 2010 Euro, stocks edge up as risk selloff pauses | Video 2:43am EDT Texas pipeline blast kills 3: official 07 Jun 2010 Manpower says global hiring prospects improve 12:06am EDT Cafe claims world's biggest burger 07 Jun 2010 Jobs data show labor market improving 03 Jun 2010 Artificial life? Synthetic genes 'boot up' cell 26 May 2010 Helen Thomas retires after Israel remarks 07 Jun 2010 FACTBOX-Developments in the Gulf of Mexico oil spill 07 Jun 2010 Circumcision may prevent sex-related penis injuries 04 Jun 2010 Clinton calls on OAS to reform 07 Jun 2010 For Apple suppliers, loose lips can sink contracts 17 Feb 2010 BP capturing oil from Gulf gusher | Video 04 Jun 2010 Apple unveils iPhone 4 to fend off Google Gabriel Madway and Alexei Oreskovic SAN FRANCISCO Mon Jun 7, 2010 8:53pm EDT Related News Apple says over 35 million iPad apps downloaded Mon, Jun 7 2010 Netflix to launch Apple iPhone app this summer Mon, Jun 7 2010 Instant view: Apple takes wraps off sleek new iPhone Mon, Jun 7 2010 Related Video iPhone 4 unveiled Mon, Jun 7 2010 1 / 24 Apple CEO Steve Jobs poses with the new iPhone 4 during the Apple Worldwide Developers Conference in San Francisco, June 7, 2010. Credit: Reuters/Robert Galbraith SAN FRANCISCO (Reuters) - Apple Inc unveiled a new iPhone on Monday that goes on sale in scores of countries this year, preparing its fastest-ever global roll-out to try and stay a step ahead of rivals like Google Inc in a red-hot smartphone market. ipad | Technology | Media 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. A slim but energetic Jobs told a media and industry audience at Apple's annual developers' conference in San Francisco that the latest phone will be available June 24 in five countries, expanding to 18 by July and 88 by September in the quickest-ever international roll-out for an iPhone. That signaled how serious Apple is about gaining traction abroad, where iPhone penetration is still relatively small. Despite the iPad's success in its first two months on the market -- more than 2 million sold in 60 days -- the iPhone remains Apple's main growth line, and the international market is key. Some analysts estimate more than two-thirds of iPhone sales are now coming from overseas. "It's really just a huge market unit opportunity abroad for the iPhone," Broadpoint Amtech analyst Brian Marshall said. But 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 Inc and HTC Corp to Samsung Electronics Co Ltd and Dell Inc -- poses the biggest threat, analysts say. The iPhone's global share surged to more than 15 percent in the first quarter, making it No. 3 in smartphones. Phones based on Android ranked No. 4 with close to 10 percent 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. "All of that said, you can't think it will be anything other than a phenomenal success." 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. GOLD STANDARD Still, 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," Jobs 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 percent this year, overtaking Microsoft Corp to become the world's most valuable technology company. Apple's shares fell 2 percent to close at $250.94 on the Nasdaq. Google shares fell 2.7 percent, while Research in Motion Ltd dropped 5.2 percent. Rodman & Renshaw analyst Ashok Kumar noted that investors are likely waiting for Apple to expand its iPhone distribution to U.S. carriers beyond AT&T before getting excited. "The next big event is going to be Verizon. It's a guessing game whether it will be late 2010 or early 2011," he said. For now, the new device should be more profitable, given price and hardware specifications, Marshall said. "I feel like we're going to see gross margins expand here on the iPhone," he said. 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 percent of its revenue. With margins estimated at 60 percent, it is Apple's prime growth driver, helping margins climb to a record 41.7 percent in the most recent quarter from 34 percent in fiscal 2007. Only last year, Research in Motion Ltd 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. (Additional reporting by Sinead Carew, Jennifer Saba and Paul Thomasch in New York) (Editing by Edwin Chan, Gerald E. McCormick and Carol Bishopric) ipad Technology Media Comments See All Comments (7) | Post Comment Jun 07, 2010 9:29pm EDT Via NewsGallery: Check out the iPhone 4 Design Video and pictures of Steve Jobs Presenting from the WWDC 2010 at the NewsGallery: http://bit.ly/OSiPhone4 NewsGallery Report As Abusive Jun 07, 2010 10:17pm EDT The BEST strategy for Google would be to port Android to the previous three iPhone platforms and the development of a tool designed to port iPhone Apps to Android as well as a reward (bounty) for doing so! westrajc Report As Abusive Jun 07, 2010 11:44pm EDT http://littlegreenfootballs.com/link/215282 JohnS2 Report As Abusive Jun 07, 2010 11:44pm EDT http://littlegreenfootballs.com/link/215282 JohnS2 Report As Abusive Jun 07, 2010 11:44pm EDT http://littlegreenfootballs.com/link/215282 JohnS2 Report As Abusive Jun 08, 2010 1:53am EDT iphone 4G facebook skin/theme www.facebookskin.com facebookskin Report As Abusive Jun 08, 2010 2:28am EDT The title of this “article” is laughable at best. Apple does not consider Google a threat in the least. There is no “fending” going on here. Or is this “The Reg’s” attempt to over hype this? FarmerBob Report As Abusive See All Comments (7) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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