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New iPhone 4S Helps AAPL Shares Recover

Shares of the world's most powerful technology company, Apple, are currently trading at just under $380 a pop, following a sudden dip it endured yesterday as the stock price fell under $360 towards the end of the day; this came after fears that the iPhone 4S - which was launched just a few hours before - might not be enough to prevent rivals from capturing market share at the top end of the smartphone segment.

Apple (opens in new tab), it appears, is trying to attack the Android threat using a three-pronged strategy that uses the iPhone 3GS, the iPhone 4 and the iPhone 4S at the lower, mid and upper echelons of the smartphone market.

Apple cut the price of the 3GS to free, that of the iPhone 4 to $99 and the cheapest iPhone 4S starting from $199, all on a two year contract.

Still, one could argue that Apple's reluctance to launch a 4G version of the iPhone 4S as well as the decision to stick with an obsolete iPhone 3GS could allow rivals such as HTC or Samsung to grapple even more market share.

But then, we expect Apple to swiftly launch the iPhone 5 and retire the iPhone 3GS if the market suddenly slides towards Android (or Windows Phone), a move which will give it a more compelling lineup, one that would comprise of Retina Display handsets with 512MB RAM at least.

Désiré Athow

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.