CUPERTINO, Calif. Apple began its new era with something unlike anything it had produced in years: disappointment.

Instead of a major new product, the electronics giant unveiled an updated version of the iPhone 4 that it released 16 months ago. Even the name, iPhone 4S, resembled the old phone.

Most observers had expected that in its first unveiling without its co-founder Steve Jobs, Apple would try to show it was still capable of wowing crowds with stunning new devices.

Immediately after the company showed off its updated smartphone, shares of Apple stock plunged nearly 5 percent. Though the stock price largely recovered, investors agreed that Tuesday's unveiling was not Apple's best performance.

"It's kind of unfortunate timing that the first post-Jobs product is not the most exciting in the world," said Alex Spektor, a wireless analyst at Strategy Analytics, who called the new phone an "incremental" improvement. By choosing not to call the device the iPhone 5, he said, "Apple is admitting that it's basically the same phone but with some souped-up specifications."

Unlike Jobs, who tended to stay on the stage for most of a product unveiling, Apple's new chief executive, Tim Cook, spoke for only a small part of the nearly two-hour presentation. Cook spoke about Apple's music, retail and computer business - pausing to joke about all the buzz over the new iPhone - but let his lieutenants introduce the new device and many of its features.

Without Jobs and his trademark ability to build excitement around a new product, some observers felt the presentation was missing some of Apple's pizzazz. Some felt it even dragged on a bit too long.

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Still, some analysts felt that the launch - if not sensational - was a smart business move by Apple, which is locked in an intense battle with rival smartphone makers, chiefly companies like Samsung Electronics Co. and HTC that make Google Inc.-powered Android phones, some at low prices.

Apple also said Tuesday it that the iPhone 4 would now sell for $99 and the iPhone 3GS will be free, both with the required service contracts.

By offering its own series of lower-cost phones, Apple is aiming at consumers in fast-growing markets in Asia and South America, where many first-time buyers can't afford the higher-end phones.

"They are satisfying the broadening demand of the market," said Charles Golvin, an analyst with Forrester Research. "It's a good strategy on Apple's part."