CUPERTINO, Calif. ( TheStreet) -- All eyes were on Apple's ( AAPL) Silicon Valley headquarters on Tuesday as the tech giant kicked off its eagerly-anticipated iPhone event.

Consumers and investors hoping to see the new iPhone 5, however, were sorely disappointed, as Apple's new CEO Tim Cook instead unveiled the iPhone 4S, a souped-up version of the iPhone 4.

New features of the iPhone 4S include a faster A5 chip, an improved 8-megapixel camera, and a 1080p HD video camera. The iPhone 4S also contains both GSM and CDMA antennas, enabling the device to run on both U.S. and European networks.

Following months of rumor and speculation, Apple also added Sprint ( S) to its list of iPhone partners, significantly extending the reach of the iconic smartphone.

In addition to its enhanced iPhone, Apple formally launched its iCloud service on Tuesday, along with iOS 5, which it is touting as the world's most advanced mobile operating system.

Apple investors, however, were underwhelmed by the iPhone 4S news. The company's stock closed down $2.1, or 0.56%, at $372.50 on Tuesday.

-- Written by James Rogers in New York.

>To follow the writer on Twitter, go to http://twitter.com/jamesjrogers.

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