Apple update fixes iPhone tracking "bugs"

Apple released updated software for iPhones to fix "bugs" that resulted in location data being unencrypted and stored for up to a year.

A note included with the update said that the cache of saved data on devices was reduced and that location information would no longer be backed up at iTunes on people's computers.

Turning off the location services feature on an Apple gadget will cause location data to be deleted, the update promised.

The changes came in an iOS 4.3.3 software update for iPhones, iPads, and iPod touch devices.

According to British researchers, iPhones and iPads running iOS 4, the latest operating system, were storing latitude and longitude coordinates in a hidden file along with a time stamp and the data was easily retrievable.


"By passively logging your location without your permission, Apple made it possible for anyone from a jealous spouse to a private investigator to get a detailed picture of your movements," they said.

The Cupertino, California-based company has staunchly denied tracking iPhone users, maintaining that location data gathered by the smartphones was used for services such as navigation or targeted ads.

Apple said the iPhone was not logging a user's location but maintaining a database of nearby WiFi hotspots and cell towers to "help your iPhone rapidly and accurately calculate its location when requested."

Apple said the location data the researchers were seeing on the iPhone is "not the past or present location of the iPhone, but rather the locations of WiFi hotspots and cell towers surrounding the iPhone's location, which can be more than one hundred miles away from the iPhone."

Apple update fixes iPhone tracking "bugs"

Apple released updated software for iPhones to fix "bugs" that resulted in location data being unencrypted and stored for up to a year.

A note included with the update said that the cache of saved data on devices was reduced and that location information would no longer be backed up at iTunes on people's computers.

Turning off the location services feature on an Apple gadget will cause location data to be deleted, the update promised.

The changes came in an iOS 4.3.3 software update for iPhones, iPads, and iPod touch devices.

According to British researchers, iPhones and iPads running iOS 4, the latest operating system, were storing latitude and longitude coordinates in a hidden file along with a time stamp and the data was easily retrievable.


"By passively logging your location without your permission, Apple made it possible for anyone from a jealous spouse to a private investigator to get a detailed picture of your movements," they said.

The Cupertino, California-based company has staunchly denied tracking iPhone users, maintaining that location data gathered by the smartphones was used for services such as navigation or targeted ads.

Apple said the iPhone was not logging a user's location but maintaining a database of nearby WiFi hotspots and cell towers to "help your iPhone rapidly and accurately calculate its location when requested."

Apple said the location data the researchers were seeing on the iPhone is "not the past or present location of the iPhone, but rather the locations of WiFi hotspots and cell towers surrounding the iPhone's location, which can be more than one hundred miles away from the iPhone."

Apple update fixes iPhone tracking "bugs"

Apple released updated software for iPhones to fix "bugs" that resulted in location data being unencrypted and stored for up to a year.

A note included with the update said that the cache of saved data on devices was reduced and that location information would no longer be backed up at iTunes on people's computers.

Turning off the location services feature on an Apple gadget will cause location data to be deleted, the update promised.

The changes came in an iOS 4.3.3 software update for iPhones, iPads, and iPod touch devices.

According to British researchers, iPhones and iPads running iOS 4, the latest operating system, were storing latitude and longitude coordinates in a hidden file along with a time stamp and the data was easily retrievable.


"By passively logging your location without your permission, Apple made it possible for anyone from a jealous spouse to a private investigator to get a detailed picture of your movements," they said.

The Cupertino, California-based company has staunchly denied tracking iPhone users, maintaining that location data gathered by the smartphones was used for services such as navigation or targeted ads.

Apple said the iPhone was not logging a user's location but maintaining a database of nearby WiFi hotspots and cell towers to "help your iPhone rapidly and accurately calculate its location when requested."

Apple said the location data the researchers were seeing on the iPhone is "not the past or present location of the iPhone, but rather the locations of WiFi hotspots and cell towers surrounding the iPhone's location, which can be more than one hundred miles away from the iPhone."

Review of iPad pricing

NEW YORK: The new iPad model comes with several improvements over the original version but the same price tag - hobbling efforts by rivals at breaking Apple Inc's hold on the emerging market for Tablet computers.

Competitors such as Motorola Mobility Holdings Inc can't seem to match the iPad's starting price of US$499. Tablets that are comparable to the iPad in features cost hundreds of dollars more, while cheaper Tablets are inferior to the iPad in quality.

This is highly unusual in the gadget business, where early products, such as the first Blu-ray players or digital cameras, are expensive. Competition then gradually brings prices down. With the iPad, the reverse is happening.

It looks as if this is a result of Apple's strategy. The company appears to have chosen, right from the start, to make less of a profit from its iPads than it does from iPods and iPhones. The move is particularly odd for a company that isn't known for cheap products.

Apple's profit margin on the US$499 entry-level iPad model is about 25%, according to an estimate by Toni Sacconaghi at Bernstein Research.

By contrast, the company's profit margin for all products, before corporate overhead, was 38.5% in the most recent quarter. He and other analysts estimate the margin for the iPhone 4 is 50% to 60%. (Apple charges about US$600 or RM1,900) for it, though it's cheaper in stores because wireless carriers subsidise it.)

Apple is telling investors to expect overall margins to keep declining, meaning competitors can't expect much of a reprieve.

Misses

There are cheaper Tablet computers available, but they don't perform as well. They have poor screens, poor touch sensitivity and poor software, and they are slow.

For example, Archos sells a Tablet that's roughly iPad-sized for US$370. Reviewers at CNET and Laptop Magazine say its screen washes out unless you're right in front of it, and it has problems sensing touch.

A Tablet that can match the iPad 2 in quality and features costs much more. For example, Motorola's Xoom sells for US$800, or US$600 if the buyer agrees to a two-year data service contract with Verizon Wireless.

The iPad 2 with the same amount of memory - 32 gigabytes - and cellular data capability on AT&T's or Verizon's network costs US$729, no contract required.

The Galaxy Tab from Samsung Electronics Co is half the size of the iPad, yet costs US$500. And that price is only available if the buyer pays an activation fee and signs up for at least one month of data service from Verizon, at a minimum total cost of US$55.

The Tablet can be had for as little as US$300, but that requires two years of data service, or hundreds of dollars in fees.

Some 100 different models of Tablet computers have already gone on sale or are on the way. Gartner Inc project that 65 million tablets will be sold worldwide this year, and analysts expect the bulk of them will be iPads.

Apple sold 15 million of the original iPad in its first nine months on sale. Research firm IDC says three-quarters of all Tablets sold in the last three months of 2010 were iPads.

Hurt coming?

J.P. Morgan analyst Mark Moskowitz believes there's a "bubble" building in Tablets, with supply potentially outstripping demand by 36% this year.

That could put additional pressure on Tablet prices, though Moskowitz believes manufacturers will be hurt less than suppliers of components, which are able to command higher prices now because Tablet makers are eager to secure displays and other parts.

Samsung, Motorola and other Tablet makers will have to rely on other products they have to cushion the blow.

Analysts say Apple has a couple of advantages that let it sell an iPad profitably at a price that would put another manufacturer at break-even, or at a loss.

Apple sells about a third of iPads in its own stores and from its website. By cutting out the middleman, Apple is able to keep more of the slim profit margin for itself.

Also, the iPad uses many of the same chips as iPhone and iPods. That means Apple is able to buy them in huge quantities, bringing down costs.

Wayne Lam at research firm IHS iSuppli estimates that Apple alone buys 20% to 25% of the world's production of Flash memory chips, which go into phones, iPods, memory cards and the iPad.

Lam also speculates that Apple is using its clout and its cash to ensure supplies of another crucial component: Touchscreen displays, which make up a large share of the Tablet's cost.

Wiley move

Apple said in January that it had spent US$3.9bil on long-term contracts to secure supplies for the next two years of a "very strategic" component it wouldn't name.

If Apple is indeed tying up a lot of the production capacity, competitors could have difficulties getting screens at a reasonable price.

Apple did not return messages to comment on that or its overall pricing strategy. Motorola had no comment.

Apple also designs its own processing chips to run iPad and the iPhone, based on blueprints it licenses from ARM Holdings Inc. For the Xoom, Motorola buys its main processing chip from nVidia Corp, meaning there's one more vendor to pay.

One other factor is the software powering the Tablet. The Xoom and other rivals generally use Google Inc's Android system, which Lam says demands more memory, raising the cost of the product.

Apple's iPad software isn't as ambitious about "multitasking," or the ability to run more than one application at the same time, so it doesn't need as much memory.

In short, using Android forces iPad competitors to produce more expensive machines, Lam said. They might be able to bring component costs down by working closely with Google to optimise the software, but meeting the needs of a range of devices and companies is difficult.

Because Apple controls its own software, it's a better position to tailor it to its own devices.

That adds up to very difficult math for competitors. - AP

Review of iPad pricing

NEW YORK: The new iPad model comes with several improvements over the original version but the same price tag - hobbling efforts by rivals at breaking Apple Inc's hold on the emerging market for Tablet computers.

Competitors such as Motorola Mobility Holdings Inc can't seem to match the iPad's starting price of US$499. Tablets that are comparable to the iPad in features cost hundreds of dollars more, while cheaper Tablets are inferior to the iPad in quality.

This is highly unusual in the gadget business, where early products, such as the first Blu-ray players or digital cameras, are expensive. Competition then gradually brings prices down. With the iPad, the reverse is happening.

It looks as if this is a result of Apple's strategy. The company appears to have chosen, right from the start, to make less of a profit from its iPads than it does from iPods and iPhones. The move is particularly odd for a company that isn't known for cheap products.

Apple's profit margin on the US$499 entry-level iPad model is about 25%, according to an estimate by Toni Sacconaghi at Bernstein Research.

By contrast, the company's profit margin for all products, before corporate overhead, was 38.5% in the most recent quarter. He and other analysts estimate the margin for the iPhone 4 is 50% to 60%. (Apple charges about US$600 or RM1,900) for it, though it's cheaper in stores because wireless carriers subsidise it.)

Apple is telling investors to expect overall margins to keep declining, meaning competitors can't expect much of a reprieve.

Misses

There are cheaper Tablet computers available, but they don't perform as well. They have poor screens, poor touch sensitivity and poor software, and they are slow.

For example, Archos sells a Tablet that's roughly iPad-sized for US$370. Reviewers at CNET and Laptop Magazine say its screen washes out unless you're right in front of it, and it has problems sensing touch.

A Tablet that can match the iPad 2 in quality and features costs much more. For example, Motorola's Xoom sells for US$800, or US$600 if the buyer agrees to a two-year data service contract with Verizon Wireless.

The iPad 2 with the same amount of memory - 32 gigabytes - and cellular data capability on AT&T's or Verizon's network costs US$729, no contract required.

The Galaxy Tab from Samsung Electronics Co is half the size of the iPad, yet costs US$500. And that price is only available if the buyer pays an activation fee and signs up for at least one month of data service from Verizon, at a minimum total cost of US$55.

The Tablet can be had for as little as US$300, but that requires two years of data service, or hundreds of dollars in fees.

Some 100 different models of Tablet computers have already gone on sale or are on the way. Gartner Inc project that 65 million tablets will be sold worldwide this year, and analysts expect the bulk of them will be iPads.

Apple sold 15 million of the original iPad in its first nine months on sale. Research firm IDC says three-quarters of all Tablets sold in the last three months of 2010 were iPads.

Hurt coming?

J.P. Morgan analyst Mark Moskowitz believes there's a "bubble" building in Tablets, with supply potentially outstripping demand by 36% this year.

That could put additional pressure on Tablet prices, though Moskowitz believes manufacturers will be hurt less than suppliers of components, which are able to command higher prices now because Tablet makers are eager to secure displays and other parts.

Samsung, Motorola and other Tablet makers will have to rely on other products they have to cushion the blow.

Analysts say Apple has a couple of advantages that let it sell an iPad profitably at a price that would put another manufacturer at break-even, or at a loss.

Apple sells about a third of iPads in its own stores and from its website. By cutting out the middleman, Apple is able to keep more of the slim profit margin for itself.

Also, the iPad uses many of the same chips as iPhone and iPods. That means Apple is able to buy them in huge quantities, bringing down costs.

Wayne Lam at research firm IHS iSuppli estimates that Apple alone buys 20% to 25% of the world's production of Flash memory chips, which go into phones, iPods, memory cards and the iPad.

Lam also speculates that Apple is using its clout and its cash to ensure supplies of another crucial component: Touchscreen displays, which make up a large share of the Tablet's cost.

Wiley move

Apple said in January that it had spent US$3.9bil on long-term contracts to secure supplies for the next two years of a "very strategic" component it wouldn't name.

If Apple is indeed tying up a lot of the production capacity, competitors could have difficulties getting screens at a reasonable price.

Apple did not return messages to comment on that or its overall pricing strategy. Motorola had no comment.

Apple also designs its own processing chips to run iPad and the iPhone, based on blueprints it licenses from ARM Holdings Inc. For the Xoom, Motorola buys its main processing chip from nVidia Corp, meaning there's one more vendor to pay.

One other factor is the software powering the Tablet. The Xoom and other rivals generally use Google Inc's Android system, which Lam says demands more memory, raising the cost of the product.

Apple's iPad software isn't as ambitious about "multitasking," or the ability to run more than one application at the same time, so it doesn't need as much memory.

In short, using Android forces iPad competitors to produce more expensive machines, Lam said. They might be able to bring component costs down by working closely with Google to optimise the software, but meeting the needs of a range of devices and companies is difficult.

Because Apple controls its own software, it's a better position to tailor it to its own devices.

That adds up to very difficult math for competitors. - AP

Review of iPad pricing

NEW YORK: The new iPad model comes with several improvements over the original version but the same price tag - hobbling efforts by rivals at breaking Apple Inc's hold on the emerging market for Tablet computers.

Competitors such as Motorola Mobility Holdings Inc can't seem to match the iPad's starting price of US$499. Tablets that are comparable to the iPad in features cost hundreds of dollars more, while cheaper Tablets are inferior to the iPad in quality.

This is highly unusual in the gadget business, where early products, such as the first Blu-ray players or digital cameras, are expensive. Competition then gradually brings prices down. With the iPad, the reverse is happening.

It looks as if this is a result of Apple's strategy. The company appears to have chosen, right from the start, to make less of a profit from its iPads than it does from iPods and iPhones. The move is particularly odd for a company that isn't known for cheap products.

Apple's profit margin on the US$499 entry-level iPad model is about 25%, according to an estimate by Toni Sacconaghi at Bernstein Research.

By contrast, the company's profit margin for all products, before corporate overhead, was 38.5% in the most recent quarter. He and other analysts estimate the margin for the iPhone 4 is 50% to 60%. (Apple charges about US$600 or RM1,900) for it, though it's cheaper in stores because wireless carriers subsidise it.)

Apple is telling investors to expect overall margins to keep declining, meaning competitors can't expect much of a reprieve.

Misses

There are cheaper Tablet computers available, but they don't perform as well. They have poor screens, poor touch sensitivity and poor software, and they are slow.

For example, Archos sells a Tablet that's roughly iPad-sized for US$370. Reviewers at CNET and Laptop Magazine say its screen washes out unless you're right in front of it, and it has problems sensing touch.

A Tablet that can match the iPad 2 in quality and features costs much more. For example, Motorola's Xoom sells for US$800, or US$600 if the buyer agrees to a two-year data service contract with Verizon Wireless.

The iPad 2 with the same amount of memory - 32 gigabytes - and cellular data capability on AT&T's or Verizon's network costs US$729, no contract required.

The Galaxy Tab from Samsung Electronics Co is half the size of the iPad, yet costs US$500. And that price is only available if the buyer pays an activation fee and signs up for at least one month of data service from Verizon, at a minimum total cost of US$55.

The Tablet can be had for as little as US$300, but that requires two years of data service, or hundreds of dollars in fees.

Some 100 different models of Tablet computers have already gone on sale or are on the way. Gartner Inc project that 65 million tablets will be sold worldwide this year, and analysts expect the bulk of them will be iPads.

Apple sold 15 million of the original iPad in its first nine months on sale. Research firm IDC says three-quarters of all Tablets sold in the last three months of 2010 were iPads.

Hurt coming?

J.P. Morgan analyst Mark Moskowitz believes there's a "bubble" building in Tablets, with supply potentially outstripping demand by 36% this year.

That could put additional pressure on Tablet prices, though Moskowitz believes manufacturers will be hurt less than suppliers of components, which are able to command higher prices now because Tablet makers are eager to secure displays and other parts.

Samsung, Motorola and other Tablet makers will have to rely on other products they have to cushion the blow.

Analysts say Apple has a couple of advantages that let it sell an iPad profitably at a price that would put another manufacturer at break-even, or at a loss.

Apple sells about a third of iPads in its own stores and from its website. By cutting out the middleman, Apple is able to keep more of the slim profit margin for itself.

Also, the iPad uses many of the same chips as iPhone and iPods. That means Apple is able to buy them in huge quantities, bringing down costs.

Wayne Lam at research firm IHS iSuppli estimates that Apple alone buys 20% to 25% of the world's production of Flash memory chips, which go into phones, iPods, memory cards and the iPad.

Lam also speculates that Apple is using its clout and its cash to ensure supplies of another crucial component: Touchscreen displays, which make up a large share of the Tablet's cost.

Wiley move

Apple said in January that it had spent US$3.9bil on long-term contracts to secure supplies for the next two years of a "very strategic" component it wouldn't name.

If Apple is indeed tying up a lot of the production capacity, competitors could have difficulties getting screens at a reasonable price.

Apple did not return messages to comment on that or its overall pricing strategy. Motorola had no comment.

Apple also designs its own processing chips to run iPad and the iPhone, based on blueprints it licenses from ARM Holdings Inc. For the Xoom, Motorola buys its main processing chip from nVidia Corp, meaning there's one more vendor to pay.

One other factor is the software powering the Tablet. The Xoom and other rivals generally use Google Inc's Android system, which Lam says demands more memory, raising the cost of the product.

Apple's iPad software isn't as ambitious about "multitasking," or the ability to run more than one application at the same time, so it doesn't need as much memory.

In short, using Android forces iPad competitors to produce more expensive machines, Lam said. They might be able to bring component costs down by working closely with Google to optimise the software, but meeting the needs of a range of devices and companies is difficult.

Because Apple controls its own software, it's a better position to tailor it to its own devices.

That adds up to very difficult math for competitors. - AP

Quick review of XtremeMac Tango TRX

The XtremeMac Tango TRX 2.1 Bluetooth audio system allows users of iPhone, iPad and iPod touch (2nd gen) to stream their favourite songs wirelessly to the device.

Manufactured by Imation, the TRX also has a dock to hold and charge the iPhone or iPod Touch.
The audio system's two midrange drivers, two dome tweeters and a downward firing subwoofer produce clear and dynamic sound, the company claimed.

The TRX also has five buttons for controlling playback, bass, treble and other features directly.
You can also control the device using the bundled infrared remote or with a Tango TRX application that can be downloaded from the App Store for free.



The app turns the iPod, iPhone and iPad into a virtual remote and is identical to the physical remote in looks and features. The app also comes with a five-band equaliser that allows users to fine tune the audio output.

Also, both the remote and the Tango TRX app can be used to control the device's functions from up to 30ft (9.14m) away. However, the physical remote requires line-of-sight to work.

The audio system also features LED status indicators and a line-in jack for connecting other audio devices.

Quick review of XtremeMac Tango TRX

The XtremeMac Tango TRX 2.1 Bluetooth audio system allows users of iPhone, iPad and iPod touch (2nd gen) to stream their favourite songs wirelessly to the device.

Manufactured by Imation, the TRX also has a dock to hold and charge the iPhone or iPod Touch.
The audio system's two midrange drivers, two dome tweeters and a downward firing subwoofer produce clear and dynamic sound, the company claimed.

The TRX also has five buttons for controlling playback, bass, treble and other features directly.
You can also control the device using the bundled infrared remote or with a Tango TRX application that can be downloaded from the App Store for free.



The app turns the iPod, iPhone and iPad into a virtual remote and is identical to the physical remote in looks and features. The app also comes with a five-band equaliser that allows users to fine tune the audio output.

Also, both the remote and the Tango TRX app can be used to control the device's functions from up to 30ft (9.14m) away. However, the physical remote requires line-of-sight to work.

The audio system also features LED status indicators and a line-in jack for connecting other audio devices.

Quick review of XtremeMac Tango TRX

The XtremeMac Tango TRX 2.1 Bluetooth audio system allows users of iPhone, iPad and iPod touch (2nd gen) to stream their favourite songs wirelessly to the device.

Manufactured by Imation, the TRX also has a dock to hold and charge the iPhone or iPod Touch.
The audio system's two midrange drivers, two dome tweeters and a downward firing subwoofer produce clear and dynamic sound, the company claimed.

The TRX also has five buttons for controlling playback, bass, treble and other features directly.
You can also control the device using the bundled infrared remote or with a Tango TRX application that can be downloaded from the App Store for free.



The app turns the iPod, iPhone and iPad into a virtual remote and is identical to the physical remote in looks and features. The app also comes with a five-band equaliser that allows users to fine tune the audio output.

Also, both the remote and the Tango TRX app can be used to control the device's functions from up to 30ft (9.14m) away. However, the physical remote requires line-of-sight to work.

The audio system also features LED status indicators and a line-in jack for connecting other audio devices.

Can Apple thrive without its visionary CEO?

SLIGHT TUMBLE: Pedestrians walking past an Apple Store in San Francisco. Shares of Apple Inc fell modestly on Jan 18 following the company's disclosure that Jobs is taking another medical leave of absence. - AP

SAN FRANCISCO: If investors were as visionary as Steve Jobs has proved to be during his 35 years of tech wizardry, they might be able to figure out whether Apple can still thrive if its founder and CEO doesn't return from his indefinite medical leave.

But Jobs' prescience is a rarity, which is why doubt and anxiety will probably hang over the company until his fate is clearer.

The iPod-iPhone-iPad revolution that Jobs unleashed over the past decade should ensure that Apple's revenue and earnings keep growing for at least the next two to three years, according to analysts.

What's more, Jobs has assembled and trained a savvy, hard-driving management team that should be capable of following his road map for the company.

The question is whether Apple can remain a step ahead and develop products that reshape technology, media and pop culture if Jobs isn't around to divine the next big thing.

Without Jobs, "Apple is a lot more like other companies. Its extraordinariness fades," says technology analyst Roger Kay of Endpoint Technologies Associates.

Apple Inc announced on Monday that Jobs, who co-founded the company in 1976, would take an indefinite medical leave for unspecified problems. The leave could be related to his previous bout with pancreatic cancer or his 2009 liver transplant.

For now, investors appear to be hoping for the best. Apple stock fell US$7.83 (RM25), a little more than 2%, to close yesterday at US$340.65 (RM1,090). It recovered more than half of that loss after the closing bell, after reporting strong earnings.

For the regular trading day, Apple lost US$7bil (RM22.4bil) in market value, although most analysts believe Jobs' leadership and presence is worth much more to the company.

Jobs' value is difficult to gauge because of the sheer force of his personality, said Robert Sutton, a professor of management science at Stanford University who has studied Jobs and Apple. "Anyone who thinks they can estimate that is probably lying," Sutton says.

Stock market analyst Brian Marshall of investment bank Gleacher & Co suspects people still hope Jobs will return to the CEO job that he has held since 1997. Since then, Jobs has orchestrated a turnaround that increased Apple's market value by 100 times.

Marshall and other analysts aren't optimistic that Jobs will resume his CEO duties, partly because he did not set a timetable for his return. Before he got the new liver, Jobs took a leave of absence from January through June 2009.

It's tough to gauge Jobs' current health problems because he has said so little about his past ones. He had a tumour removed in 2004 - a rare and very treatable form of pancreatic cancer - but never said whether it had spread to lymph nodes, nor how extensive his surgery was.

"We don't really know how much of his pancreas was removed. He may just have a remnant," and that may be causing continued digestive difficulties, said Dr Charles R. Thomas of Ohio State University's Knight Cancer Institute.

Dr Jennifer Obel, a spokesman for the American Society of Clinical Oncology and a cancer specialist at Northshore University Health System in suburban Chicago, said the prognosis is good for those with pancreatic tumours like the one Jobs had, even if the tumors spread.

"He's done extremely well living with this disease for many years," she said. "I wouldn't assume anything until he has released more information."

Apple has declined further comment on Jobs' health.

Stepping up

Apple barely missed a beat the last time Jobs was gone, and its stock climbed more than 60% as sales of the iPhone and Mac computers surged, even as the recession dragged on. That's a testament to Apple's chief operating officer, Tim Cook, who will be in charge while Jobs is away once again.

In a Tuesday conference call last week to discuss Apple's earnings, Cook predicted Apple will still shine.

"Apple is doing its best work ever," Cook said. "We are all very happy with the product pipeline, and the team here has an unparalleled breadth and depth of talent and a culture of innovation that Steve has driven in the company. Excellence has become a habit."

Cook has pretty much the same management team supporting him this time. The key players besides Cook include Jonathan Ive, who oversees the elegant design of Apple's products; Ron Johnson, who runs Apple's stores; Philip Schiller, the marketing chief; and Scott Forstall, who supervises the iPhone software.

It's a bench that investors would like to know better, says Jeffrey Sonnenfeld, a professor at the Yale School of Management and an expert on executive leadership.

"You only hear about Santa," he says, "but it's time that we hear more about the elves."

Cook, who has been with Apple since 1998, and Ive, who has been with there since 1992, will probably carry the biggest load while Jobs is gone, analysts say.

Partly because his role at Apple attracted so much attention during Jobs' last medical leave, Cook is better known than Ive. Apple has recognised Cook's contributions by making him its top-paid executive, with a 2010 compensation package valued at US$59.1mil (RM189mil). Jobs limits his annual salary to US$1 (RM3.20).

But Ive has played a critical role in turning the products that Jobs envisioned into reality, said Leander Kahney, who has written books and a blog about Apple.

Apple's management team has been working together for so long that all the key executives should have a sense of what Jobs would want. And they may still be in touch with Jobs on key decisions because Jobs said he intends to remain involved in the company's strategy. Kay thinks Jobs may have planned even more in the past year than he usually does because of his shaky health.

The stakes are much higher than during Jobs' last medical leave. When Jobs left last time, Apple's market value stood at about US$78bil (RM250bil). It is now US$312bil (RM998bil), behind only Exxon Mobil among US companies.

Apple also is facing fiercer competition from Google, which has already threatened the iPhone with a rival software system for smart phones and is now setting its sights on the iPad in the market for Tablet computers.

Jobs' greatest gift hasn't been for invention as much his uncanny ability to anticipate what people want and then demand the technology be designed in a simple way that appeals to a mass market.

"You can't really teach that," said George Haley, a business and marketing professor at the University of New Haven. "You can teach the processes, but not the insight. It takes a genius to do it right."

Timing

Jobs has also shown an exquisite sense for when the time is right for a product. For instance, the concept for what turned into the iPad was brought to Jobs several years before Apple had even introduced its own phone.

He liked the idea of a computer Tablet but decided instead that its touchscreen technology would be better suited for a smaller screen at that time. That decision hatched the iPhone in 2007, a hot-selling device that paved the way for Apple's latest must-have gadget, the iPad.

Other companies developed the technology that created the computer mouse and digital music players, but neither of those innovations caught on until Jobs embraced the ideas and turned them into game-changing products.

"Steve did not invent MP3 players - he reinvented them," said Tim Bajarin, the president of Creative Strategies and a longtime Apple watcher. "He didn't invent the smartphone - he reinvented it. He didn't invent the Tablet - he reinvented it."

It's difficult to put a price on that kind of market intuition, particularly in an industry that changes so quickly. Almost no one had heard of Twitter three years ago or Facebook five years ago - or for that matter the iPod 10 years ago.

Many analysts liken Jobs to Walt Disney, an entrepreneur who didn't come up with animation or amusement parks but sculpted them into a business that left an indelible mark on the world. Jobs is now the largest shareholder of Walt Disney Co, a stake he accumulated when he agreed to sell Pixar Animation a few years ago.

Just as Walt Disney Co survived the 1966 death of its founder, Apple looks to be positioned well if Jobs doesn't return to health. But even Disney struggled for years after the well of its founder's ideas finally ran dry. - AP

Can Apple thrive without its visionary CEO?

SLIGHT TUMBLE: Pedestrians walking past an Apple Store in San Francisco. Shares of Apple Inc fell modestly on Jan 18 following the company's disclosure that Jobs is taking another medical leave of absence. - AP

SAN FRANCISCO: If investors were as visionary as Steve Jobs has proved to be during his 35 years of tech wizardry, they might be able to figure out whether Apple can still thrive if its founder and CEO doesn't return from his indefinite medical leave.

But Jobs' prescience is a rarity, which is why doubt and anxiety will probably hang over the company until his fate is clearer.

The iPod-iPhone-iPad revolution that Jobs unleashed over the past decade should ensure that Apple's revenue and earnings keep growing for at least the next two to three years, according to analysts.

What's more, Jobs has assembled and trained a savvy, hard-driving management team that should be capable of following his road map for the company.

The question is whether Apple can remain a step ahead and develop products that reshape technology, media and pop culture if Jobs isn't around to divine the next big thing.

Without Jobs, "Apple is a lot more like other companies. Its extraordinariness fades," says technology analyst Roger Kay of Endpoint Technologies Associates.

Apple Inc announced on Monday that Jobs, who co-founded the company in 1976, would take an indefinite medical leave for unspecified problems. The leave could be related to his previous bout with pancreatic cancer or his 2009 liver transplant.

For now, investors appear to be hoping for the best. Apple stock fell US$7.83 (RM25), a little more than 2%, to close yesterday at US$340.65 (RM1,090). It recovered more than half of that loss after the closing bell, after reporting strong earnings.

For the regular trading day, Apple lost US$7bil (RM22.4bil) in market value, although most analysts believe Jobs' leadership and presence is worth much more to the company.

Jobs' value is difficult to gauge because of the sheer force of his personality, said Robert Sutton, a professor of management science at Stanford University who has studied Jobs and Apple. "Anyone who thinks they can estimate that is probably lying," Sutton says.

Stock market analyst Brian Marshall of investment bank Gleacher & Co suspects people still hope Jobs will return to the CEO job that he has held since 1997. Since then, Jobs has orchestrated a turnaround that increased Apple's market value by 100 times.

Marshall and other analysts aren't optimistic that Jobs will resume his CEO duties, partly because he did not set a timetable for his return. Before he got the new liver, Jobs took a leave of absence from January through June 2009.

It's tough to gauge Jobs' current health problems because he has said so little about his past ones. He had a tumour removed in 2004 - a rare and very treatable form of pancreatic cancer - but never said whether it had spread to lymph nodes, nor how extensive his surgery was.

"We don't really know how much of his pancreas was removed. He may just have a remnant," and that may be causing continued digestive difficulties, said Dr Charles R. Thomas of Ohio State University's Knight Cancer Institute.

Dr Jennifer Obel, a spokesman for the American Society of Clinical Oncology and a cancer specialist at Northshore University Health System in suburban Chicago, said the prognosis is good for those with pancreatic tumours like the one Jobs had, even if the tumors spread.

"He's done extremely well living with this disease for many years," she said. "I wouldn't assume anything until he has released more information."

Apple has declined further comment on Jobs' health.

Stepping up

Apple barely missed a beat the last time Jobs was gone, and its stock climbed more than 60% as sales of the iPhone and Mac computers surged, even as the recession dragged on. That's a testament to Apple's chief operating officer, Tim Cook, who will be in charge while Jobs is away once again.

In a Tuesday conference call last week to discuss Apple's earnings, Cook predicted Apple will still shine.

"Apple is doing its best work ever," Cook said. "We are all very happy with the product pipeline, and the team here has an unparalleled breadth and depth of talent and a culture of innovation that Steve has driven in the company. Excellence has become a habit."

Cook has pretty much the same management team supporting him this time. The key players besides Cook include Jonathan Ive, who oversees the elegant design of Apple's products; Ron Johnson, who runs Apple's stores; Philip Schiller, the marketing chief; and Scott Forstall, who supervises the iPhone software.

It's a bench that investors would like to know better, says Jeffrey Sonnenfeld, a professor at the Yale School of Management and an expert on executive leadership.

"You only hear about Santa," he says, "but it's time that we hear more about the elves."

Cook, who has been with Apple since 1998, and Ive, who has been with there since 1992, will probably carry the biggest load while Jobs is gone, analysts say.

Partly because his role at Apple attracted so much attention during Jobs' last medical leave, Cook is better known than Ive. Apple has recognised Cook's contributions by making him its top-paid executive, with a 2010 compensation package valued at US$59.1mil (RM189mil). Jobs limits his annual salary to US$1 (RM3.20).

But Ive has played a critical role in turning the products that Jobs envisioned into reality, said Leander Kahney, who has written books and a blog about Apple.

Apple's management team has been working together for so long that all the key executives should have a sense of what Jobs would want. And they may still be in touch with Jobs on key decisions because Jobs said he intends to remain involved in the company's strategy. Kay thinks Jobs may have planned even more in the past year than he usually does because of his shaky health.

The stakes are much higher than during Jobs' last medical leave. When Jobs left last time, Apple's market value stood at about US$78bil (RM250bil). It is now US$312bil (RM998bil), behind only Exxon Mobil among US companies.

Apple also is facing fiercer competition from Google, which has already threatened the iPhone with a rival software system for smart phones and is now setting its sights on the iPad in the market for Tablet computers.

Jobs' greatest gift hasn't been for invention as much his uncanny ability to anticipate what people want and then demand the technology be designed in a simple way that appeals to a mass market.

"You can't really teach that," said George Haley, a business and marketing professor at the University of New Haven. "You can teach the processes, but not the insight. It takes a genius to do it right."

Timing

Jobs has also shown an exquisite sense for when the time is right for a product. For instance, the concept for what turned into the iPad was brought to Jobs several years before Apple had even introduced its own phone.

He liked the idea of a computer Tablet but decided instead that its touchscreen technology would be better suited for a smaller screen at that time. That decision hatched the iPhone in 2007, a hot-selling device that paved the way for Apple's latest must-have gadget, the iPad.

Other companies developed the technology that created the computer mouse and digital music players, but neither of those innovations caught on until Jobs embraced the ideas and turned them into game-changing products.

"Steve did not invent MP3 players - he reinvented them," said Tim Bajarin, the president of Creative Strategies and a longtime Apple watcher. "He didn't invent the smartphone - he reinvented it. He didn't invent the Tablet - he reinvented it."

It's difficult to put a price on that kind of market intuition, particularly in an industry that changes so quickly. Almost no one had heard of Twitter three years ago or Facebook five years ago - or for that matter the iPod 10 years ago.

Many analysts liken Jobs to Walt Disney, an entrepreneur who didn't come up with animation or amusement parks but sculpted them into a business that left an indelible mark on the world. Jobs is now the largest shareholder of Walt Disney Co, a stake he accumulated when he agreed to sell Pixar Animation a few years ago.

Just as Walt Disney Co survived the 1966 death of its founder, Apple looks to be positioned well if Jobs doesn't return to health. But even Disney struggled for years after the well of its founder's ideas finally ran dry. - AP