NEW YORK ( TheStreet) - Apple ( AAPL) shares rose 0.4% to $375.98 in premarket trading on Tuesday ahead of its announcement of the highly anticipated iPhone 5 on Tuesday.

The new phone is expected to be a lighter, slimmer version of its predecessor with a better camera and faster processor.

Qualcomm ( QCOM) shares fell 0.6% to $47.35 in premarket trading Tuesday after announcing a series of executive changes, including moving its president, Steve Altman, into the vice chairman position.

Former executive vice president Steve Mollenkopf will become president and chief operating officer.

Online music service Rhapsody said on Monday it's acquiring Napster from parent Best Buy ( BBY). The move steepens competition with other music services, including Spotify and Rdio.

Microsoft ( MSFT) has ditched its Zune player, instead choosing to focus on Windows Phone 7 for music and video services, the company said on Tuesday. The move comes as Apple is also rumored to be killing off its original music device, the iPod Classic.

Shares of Microsoft dropped 1% to $24.29 in premarket trading on Tuesday.

--Written by Olivia Oran in New York.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to: