For the first time ever, Apple will let users trade in their old iPhones for new ones, according to Bloomberg's sources — an indication of just how much the company's market positioning has dwindled the launch of the iPhone 5... and the re-birth of Samsung's mobile dominance. Those looking to get rid of their iPhones will soon be able to head into Apple stores and turn them in for a discount on a newer model. It's a pretty sweet set-up for someone who has an old iPhone and wants a new one. But it's also a genius plot for Apple to increase their market share in the places it most needs help. 
 
 First, Apple gets to retain those loyal customers already using an iPhone — you know, the ones who see that fancy Samsung Galaxy S IV with its big bright screen and think they want to switch. Apple has never had to give customers an incentive to buy a new version of the iPhone, and it's never had to run an exchange program like so many cellphone providers have for years; then again, Apple's never faced competition like it is from Samsung right now. Either the upgrade incentive was obvious — of course an iPhone 3G owner would get the iPhone 4 — or most self-respecting dumb phone owners getting into the market would choose an Apple phone over the other options. But even since the iPhone 5 hit the market in September, those expectations have changed wildly: The iPhone has been losing user loyalty while Samsung has kept gaining on Apple. A recent report found that Samsung passed Apple in the U.S. cellphone market — at least for now. That could all change once Apple announces another new phone — people tend to hold off on upgrades until the next big unveil out of Cupertino. But with the walls starting to close in a bit, it won't hurt for Apple to start nudging people in that direction. 
 
 Second, the new trade-in plan reflects Apple's attempt to position itself in emerging markets, where your average cellphone customer doesn't want to spend upwards of $200 on a device. In addition to the rumored cheap iPhone, which looks more alive than ever with Apple's Foxconn breakup, the upgrade program is a great way to get lower-priced devices to people who want them. The used gadgets will only be sold in countries with demand for a cheaper set, the sources told Bloomberg's Peter Burrows. The older models won't be used as replacement devices for customers with broken iPhones, a practice that angered consumers in China so much that Apple changed its warranty policy there. This latest ploy, which won't be available at your local provider store, is just another way Apple could increase market share in those overseas markets, where it hasn't had as much success because the iPhone remains just too damn expensive. 
 
 Want to add to this story? Let us know in comments or send an email to the author at rgreenfield at theatlantic dot com. You can share ideas for stories on the Open Wire. ||||| WSJ's Walt Mossberg on The News Hub gives us his first impressions of the iPhone 4S, the latest generation of Apple's popular smartphone, which was unveiled on Tuesday. 
 
 Apple Inc.'s Tim Cook stepped into the spotlight for the first time as chief executive to unveil a new iPhone that was more fizzle than pop. 
 
 Apple unveiled the iPhone 4S yesterday, disappointing some investors who were looking for a more significant re-design of the company's flagship product although many analysts are still on Apple's side. Steven Russolillo and Paul Vigna discuss on Markets Hub. Photo: AP. 
 
 View Slideshow Paul Sakuma/Associated Press Apple CEO Tim Cook spoke at Apple headquarters in Cupertino, Calif., Tuesday. 
 
 At a keynote address at Apple's Cupertino, Calif., headquarters, the new CEO introduced the fifth-generation of the company's smartphone, dubbed the 4S, which features a faster processor and a better camera, as well as voice-command services. 
 
 But despite upgrades to its internal components and some new software capabilities, the iPhone 4S looks like its predecessor physically and doesn't make a big leap in its overall capabilities. Many of its features are also already available on competitors' phones. That left some analysts, investors and customers wanting more. 
 
 "Underwhelming is the word that hit me," said Endpoint Technologies Associates analyst Roger Kay. Many of the new software features, such as syncing media among devices over the Internet, are "really interesting," he said, "but when it comes to packaging that for excitement, it is really hard to show people why that is so cool." 
 
 The letdown was echoed in the early performance of Apple's shares, which fell as much as 5% Tuesday and finished down 0.6% at $372.50 at 4 p.m. trading even as the broader market rose. 
 
 Piper Jaffray analyst Gene Munster said there will inevitably be long lines for the new iPhone, which will arrive at stores in the U.S., Japan and several other countries on Oct. 14. "But those lines could have been longer if they would've just gone to a four-inch screen," instead of keeping it at 3½ inches, he said. 
 
 The Apple Evolution For more than three decades, Apple's much-hyped product launches have brought plenty of smash hits—and one or two disappointments. Take a look back at Apple unveilings over the years. View Slideshow Associated Press 
 
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 Mr. Munster estimates Apple sold 22 million iPhones in the quarter that ended in September and will sell 25 million in the next quarter. 
 
 Mr. Cook, who took the reins from co-founder Steve Jobs in August, emulated many aspects of Mr. Jobs's charismatic presentation style during his keynote, reminding the audience of invited journalists and guests that the iPhone is "pummeling" the competition in sales and customer satisfaction. "Today will remind you of the uniqueness of this company," he said. 
 
 Mr. Cook said the iPhone's new features "are great and fantastic and industry-leading in and of themselves. But what sets them apart and puts Apple way out front is how they are engineered to work together so well." 
 
 The iPhone, introduced in 2007, is now Apple's single biggest product category, and it serves as a critical gateway for consumers to its other products. In the quarter that ended in June, Apple had iPhone-related revenue of $13.3 billion and total revenue of $28.6 billion. 
 
 The iPhone 4S is Apple's first overhaul of its popular smartphone in nearly 16 months and comes at a vastly different time for the company and the market. Apple now faces a considerable rival in the form of phones running Google Inc.'s Android software, which is also touch operated and offers users access to thousands of apps. 
 
 The new iPhone, which comes in black or white, will have an Apple A5 processor, the same chip found in the company's iPad 2 tablet. The new chip can download data twice as fast and can handle graphics seven times faster, making it better for videogames, Apple said. Users can also go directly to the camera even when the phone is locked and take a photo within 1.1 seconds. The phone's battery offers eight hours of 3G talk time, nine hours of Wi-Fi browsing and 10 hours of video. 
 
 Apple CEO Tim Cook and SVP of Worldwide Product Marketing Phillip Schiller announced the new Apple iPhone4S today in Cupertino, California. 
 
 Asia Today: Apple's new iPhone 4S failed to impress analysts, but it could mean opportunity for Apple's competitors in Asia. Meanwhile in Australia, the battle over patents between Samsung and Apple continues. 
 
 But with Tuesday's announcement, Apple also sought to focus attention on its software. The new phone will run Apple's latest mobile operating system, iOS 5, which features new messaging and data-synchronization tools and is part of a wider ecosystem of software and services designed to work together, so that, for example, photos taken on the iPhone show up automatically on a user's iPad. 
 
 The biggest new weapon in Apple's software arsenal is a personal assistant app known as Siri. The software can follow voice commands to complete basic tasks such as checking the weather or responding to a text message, and it can read its answers aloud so that it can be used by people driving cars. 
 
 The new software features such as the personal assistant "will change how we are using a smartphone and what we expect from a great user experience. Once you are used to it, there is no way going back," said Roger Entner of research firm Recon Analytics. 
 
 It also introduced a new service called "Find My Friends" that lets users track others on a map with their permission and will enable parents to check the location of their children. 
 
 Apple courted controversy with the unusual external design of its iPhone 4 antenna, which some reviewers and users claimed degraded call quality. The iPhone 4S antenna looks the same from the outside, but Apple said it has been tweaked to improve call quality and download data twice as fast. 
 
 The iPhone 4S is also a "world phone," which means it can run on both major forms of mobile technology. Apple also announced, almost as an after-thought, that the third-largest U.S. network provider, Sprint Nextel Corp., will join AT&T Inc. and Verizon Communications Inc. in carrying the iPhone. 
 
 The iPhone 4S's prices remain the same as previous top-of-the-line models, starting at $199 for a 16 gigabyte model, along with a two-year contract. The existing iPhone 4 will now be sold in an 8 gigabyte model for $99, and in a new move, Apple said the earlier iPhone 3GS model will be free with a two-year AT&T contract. 
 
 Waiting for Apple in Asia See how long it took Asian markets to get the latest Apple products. View Interactive 
 
 Some Apple followers—and more than a few avid customers—had expected Apple's fifth-generation phone to be called the iPhone 5. But Apple chose to follow the strategy it used in upgrading its iPhone 3G. That phone was called the 3GS and included improvements to software and services but retained the same basic form. 
 
 Many investors are watching to see whether Mr. Cook will be able to keep up Apple's tradition of innovation without Mr. Jobs. "This is my first product launch since being named CEO—I'm sure you didn't know that," Mr. Cook quipped at the event's start in his trademark Southern drawl. 
 
 Mr. Cook opened and closed Tuesday's keynote, but he left the main duties of announcing the iPhone 4S to deputies such as Phil Schiller, Apple's senior vice president of world-wide product marketing. 
 
 Mr. Jobs, who stepped down as he battles an undisclosed illness, didn't appear to be in attendance. 
 
 Write to Geoffrey A. Fowler at geoffrey.fowler@wsj.com and John Letzing at john.letzing@dowjones.com
– You know that ancient iPhone 4 from 2011 that you're still saddled with? Well, multiple sources tell Bloomberg that you'll soon be able to trade it in for a discount on the shiny and (relatively) new iPhone 5. It's the first time Apple has allowed such a thing, notes Rebecca Greenfield on the Atlantic Wire; she thinks it's a result of just how much Apple's market positioning has dropped lately—and how scared it is of Samsung. Under the program, said to launch this month, Bloomberg predicts that customers with working iPhone 4 or 4S models may be able to get a basic iPhone 5 for no money down.