Apple's likely iPhone 5 announcement expected to kick off holiday shopping season

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SAN FRANCISCO – After weeks of
speculation, anticipation and a dose of hype, Apple is widely expected
to announce a new smartphone at an event in San Francisco on Wednesday.


Apple isn't saying anything about the topic of the event, but the
email invitation it sent to reporters contains a shadow in the shape of a
"5" -- a nod to the iPhone 5. It is being held in San Francisco at
Yerba Buena Center for the Arts Theater, where Apple has held many
product launches.


The new model is expected to work with fourth-generation, or 4G,
cellular networks. That capability is something Samsung's Galaxy S III
and many other iPhone rivals already have. A bigger iPhone screen is
also possible. The new model will likely go on sale in a week or two.


Apple also plans to update its phone software this fall and will
ditch Google's mapping service for its own, as a rivalry between the two
companies intensifies.


In a related development, Google said Tuesday that it is releasing a
new YouTube app for the iPhone and the iPad. The changes come amid the
expiration of a five-year licensing agreement that had established
YouTube as one of the built-in applications in Apple's mobile devices.


Still unknown is whether Apple will announce a smaller version of its iPad on Wednesday.


Apple dominates the market for tablet computers, shipping seven out
of every 10 tablets worldwide in the second quarter, according to
research firm IHS iSuppli. Rivals have been trying to compete by
producing smaller, cheaper models --such as Amazon's Kindle Fire. A mini
iPad would challenge those relative newcomers.


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Sales of Apple's iPhones are still strong, though the company lost
the lead in smartphones to Samsung this year. Samsung Electronics
benefited from having its Galaxy S III out in the U.S. in June, while
Apple was still selling an iPhone model it released last October. A new
iPhone will allow Apple to recapture the attention and the revenue.


Amid expectations of a new iPhone, Amazon, Nokia and Motorola all
tried to generate interest in their products last week, hoping that a
head start on the buzz will translate into stronger sales. Makers of
consumer electronics are refreshing their products for the holiday
shopping season.


Amazon announced four new Kindle Fire models and a new line of
stand-alone e-readers, while Nokia and Motorola unveiled five new
smartphones between them.


Nokia and Microsoft, in particular, are trying to generate interest
in a new Windows operating system out next month. The two phones
announced by Nokia are among the first to run Windows Phone 8.


Here's a look at what to expect in the coming months:


-- REKINDLING THE FIRE


Amazon.com's 7-inch Kindle Fire is one of the smaller tablets with
decent sales. On Friday, it will sell an updated version with a faster
processor, more memory and longer battery life. It will also cut the
price to $159, from $199, making it far cheaper than the iPad, which
starts at $399 for the 2011 version still on sale. (The most recent ones
start at $499.)


Amazon is also releasing higher-end models under the Kindle Fire HD
line. A 7-inch one will go for $199, while an 8.9-inch one will go for
$299. There's also a $499 model that can use the 4G cellular networks
that phone companies have been building. A data plan will cost an extra
$50 a year. The smaller HD model will start shipping Friday, while the
larger ones will be available Nov. 20.


Amazon also refreshed its line of stand-alone e-readers, offering the
Paperwhite, with its own light source. Tablets such as the iPad and the
Fire don't work as well in bright light because they are lit from the
back. Amazon says the light on the Paperwhite is directed down at the
display.


Barnes and Noble, which makes the 7-inch Nook Tablet, may have an update this fall as well.


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Toys R Us, meanwhile, said Monday that it is making a 7-inch tablet
aimed at children. The Tabeo will go on sale Oct. 21 for $149.99.


-- MOTOROLA'S RETURN


Though it's a pioneer in the cellphone industry, Motorola hasn't had a
hit since the Razr phone came out in 2004. Under new owner Google,
Motorola Mobility is trying to change that.


Last week, Motorola announced three new smartphones bearing the Razr
name. The $99 Droid Razr M will be in Verizon Wireless stores this
Thursday, the day after Apple's announcement.


Motorola will have two high-end models, the Razr HD and Razr Maxx HD,
later this year. It's emphasizing long battery life -- up to 21 hours
of talk time for the Maxx HD, or 10 hours of video streaming.


These are the first major products from Motorola since Google bought
the company for $12.4 billion in May. Google, meanwhile, continues to
sell a 7-inch Android tablet, the Nexus 7, made in partnership with
AsusTek Computer.


-- CALLING ON WINDOWS


Microsoft Corp. will release a new version of the Windows operating
system on Oct. 26, one that's designed to work on both traditional
computers and tablet devices. A new version of the Windows Phone system
is coming out, too.


Once-dominant phone maker Nokia Corp. has been struggling in the
shadow of Apple and Android, and it's counting on the new Windows system
for a revival. Last week, Nokia and Microsoft unveiled two new devices
under Nokia's Lumia brand -- the 820 and the 920.


Nokia CEO Stephen Elop says the new phones will go on sale in the
fourth quarter in "select markets." He didn't say what they would cost
or which U.S. carriers would have them. Investors were disappointed, and
Nokia's stock fell 16 percent on the day of the announcement.


Samsung, which surpassed Nokia as the world's largest maker of mobile
phones in 2011 and overtook Apple in smartphones this year, showed off a
Windows 8 phone late last month. It didn't announce an availability
date either.


-- SURFACE


Microsoft plans its own tablet computer, too. It's new territory for
Microsoft, which typically leaves it to others to make devices using its
software. Now, it will be competing against its partners.


The Surface tablet will come in two versions, both with 10.6-inch
screens, slightly larger than the iPad's. One model will run on
phone-style chips, just like the iPad, and will be sold for a similar
price. A heavier, more expensive version will run on Intel chips and be
capable of running standard Windows applications. The Surface will go on
sale on Oct. 26.


-- NEW BLACKBERRYS


A year ago Research In Motion Ltd. disclosed that it was working on a
next-generation phone system for the BlackBerry, which now looks
ancient next to the iPhone and Android devices. It was supposed to be
out in time for this year's holiday season. That won't happen.


In June RIM pushed the release of BlackBerry 10 devices into early
next year, saying it wasn't ready. That means RIM will not only compete
with the new iPhone and Android devices out this fall, but it will also
have to contend with the new Windows devices.