Shares of Sprint Nextel, the No.3 wireless carrier continued their two-day plunge after Apple introduced a new version of iPhone 4 and said it would be sold by Sprint.

Sprint shares were off about 3 percent late Tuesday after Apple announced the iPhone4S. On Monday, Sprint shares fell 10 percent after reports the company had agreed to pay as much as $20.5 billion for iPhones through 2015. In late trading, they were at $2.69.

Because the Overland Park, Kan.-based carrier reported cash of only about $2.9 billion on June 30, analysts had voiced concern it may have laid out too much cash.

In its announcement in Cupertino, Calif., Apple CEO Tim Cook said Sprint will sell iPhone 4S models next week. However, he failed to show off the much-anticipated iPhone5.

A tie-up with Sprint adds a third major carrier for the iPhone developer, which first sold exclusively through AT&T, then added Verizon Communications. AT&T had been criticized for its iPhone service, one reason why it is seeking to acquire No. 4 wireless carrier T-Mobile USA for $39 billion.

The U.S. Justice Department filed antitrust charges against the T-Mobile takeover. Sprint has joined the case against AT&T in its own right. Trial is scheduled for February in Washington, D.C.

Tuesday's drop lowers Sprint's market capitalization to only $8.1 billion. Shares are off 36 percent in 2011