Apple Investors Leave Unimpressed - TheStreet

Apple Investors Leave Unimpressed

Steve Jobs' annual Apple product show revealed a redesigned iPhone and a video conferencing app.
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SAN FRANCISCO (

TheStreet

) -- At today's WWDC 2010 event,

Apple

(AAPL) - Get Report

unveiled a redesigned glass-and-steel iPhone plus a video chat application called FaceTime.

Hoping for something more, investors booked profits and sent Apple shares down 2% after the presentation.

WWDC 2010.

Apple chief Steve Jobs, who hosted the iPhone ceremony that was live-blogged by

TheStreet

from the Moscone Center in San Francisco, said that the new iPhone will start at $199 and will be available on June 24 in five countries.

As expected, Apple cut the price of the current iPhone 3GS to $99. And in an effort presumably to lock in subscribers ahead of a

Verizon

(VZ) - Get Report

iPhone arrival later this year or next year,

AT&T

(T) - Get Report

says it will allow customers whose contracts expire this year to upgrade at the subsidized price.

The move by AT&T not only accelerates Apple's iPhone replacement cycle, it will help AT&T lock in iPhone customers for another two years amid rising smartphone competition from

Google

(GOOG) - Get Report

Android phones.

As

TheStreet

has reported, Apple has plans to start producing a CDMA version of the iPhone that will be available as early as November, raising the possibility of a

Verizon iPhone

.

Jobs presentation included his "one more thing..." The climatic final act was the introduction of FaceTime, a video calling application not unlike

Skype

. The FaceTime app will work with the front-facing cameras on the new iPhone only on WiFi Net connections.

Apple shares fell $2.90, or 1%, to $253.06 in late afternoon trading Monday.

--Written by Scott Moritz in New York.