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October 5, 2011

Key dates in Apple history

SAN FRANCISCO: The following are key dates in the history of Apple, whose co-founder Steve Jobsdied of cancer Wednesday at age 56.

1976: Steve Jobs and Steve Wozniak unveil the first Apple computer in Palo AltoCalifornia. It consists of little more than a circuit board and costs just under $700.

1977: The Apple II with a one-megahertz processor becomes the first mass produced computer and an instant hit.

1980: Apple becomes a publicly traded company.

1983: Lisa, the first personal computer featuring a mouse for navigating and desktop icons and folders, is introduced. Its failure is blamed on a daunting price of nearly $10,000.

1984: The Macintosh PC makes its debut. It is affordable and features innovations such as a disk drive, built-in monitor, and a mouse.

1985: Jobs resigns after being stripped of control of Apple in an internal power struggle.

1986: John Sculley becomes Apple president. Jobs starts computer company NeXT and buys Lucasfilm's computer graphics division, renaming it Pixar.

1996: Apple buys NeXT and makes Jobs an adviser.

1997: Jobs returns as head of Apple. Arch-rival Microsoft invests 150 million dollars in the company.

1998: Jobs revamps Apple's product line, churning out colorful $1,300 iMac PCs with monitors and drives in the same casing.

1999: The iBook, marketed as a mobile iMac, is introduced.

2001: Apple launches the iPod pocket digital music player for $399 and opens its first retail store in Palo Alto.

2003: Apple opens online music store iTunes.

2004: Jobs undergoes an operation for pancreatic cancer.

2007: Apple kicks off the era of the touchscreen smartphone with the new iPhone.

2009: Jobs goes on medical leave in January, returning to work in June after undergoing a liver transplant.

2010: Jobs unveils the iPad tablet computer, a huge hit after it goes on sale in April. Apple passes Microsoft in May as the largest US technology company in terms of market value.

2011: 

January 17: Jobs takes another medical leave of absence.

January 18: Apple reports a record quarterly net profit of $6 billion on revenue of $26.74 billion

March 2: Jobs makes surprise appearance to unveil of the latest iPad

June 6: Jobs again surprises by launching Apple's free online storage hub iCloud

July 19: Apple second quarter profit hits $7.31 billion on revenue of $28.57 billion.

August 9: Apple briefly passes ExxonMobil as the world's largest company by market capitalization

August 24: Jobs announces his resignation as CEO and is replaced by chief operating officer Tim Cook, but stays on as Apple board chairman.

October 4: Apple unveils the iPhone 4s, which includes a built-in "personal assistant" but fails to dazzle investors as it is not the next-generation iPhone 5 smartphone many had hoped for.

October 5: Apple announces the death of Jobs at the age of 56.

Tributes for Steve Jobs


The death of Apple Inc. co-founder Steve Jobs prompted an outpouring of comments and tributes from political, technology, entertainment and business leaders. The following is a selection of those comments:
BILL GATES, MICROSOFT CO-FOUNDER AND CHAIRMAN
"Steve and I first met nearly 30 years ago, and have been colleagues, competitors and friends over the course of more than half our lives. The world rarely sees someone who has had the profound impact Steve has had, the effects of which will be felt for many generations to come. For those of us lucky enough to get to work with him, it's been an insanely great honor."
MARK ZUCKERBERG, FACEBOOK FOUNDER AND CEO, ON FACEBOOK "Steve, thank you for being a mentor and a friend. Thanks for showing that what you build can change the world. I will miss you.
DISNEY CEO BOB IGER
"Steve Jobs was a great friend as well as a trusted adviser. His legacy will extend far beyond the products he created or the businesses he built. It will be the millions of people he inspired, the lives he changed, and the culture he defined. Steve was such an 'original,' with a thoroughly creative, imaginative mind that defined an era. Despite all he accomplished, it feels like he was just getting started."
MITT ROMNEY, ON TWITTER
"Steve Jobs is an inspiration to American entrepreneurs. He will be missed."
ARNOLD SCHWARZENEGGER, FORMER CALIFORNIA GOVERNOR, ON TWITTER
"Steve lived the California Dream every day of his life and he changed the world and inspired all of us."
INVESTOR MARC ANDREESSEN
"Steve was the best of the best. Like Mozart and Picasso, he may never be equalled."
LOWELL MCADAM, VERIZON CEO
"Steve Jobs devoted his ceaseless energy and creative genius to technology innovation that changed the world time and time again. Our industry and all of our customers benefited tremendously from his pursuit of excellence."


Apple released a separate statement saying that Jobs had died.[8][143] The statement read "We are deeply saddened to announce that Steve Jobs passed away today. Steve's brilliance, passion and energy were the source of countless innovations that enrich and improve all of our lives. The world is immeasurably better because of Steve. His greatest love was for his wife, Laurene, and his family. Our hearts go out to them and to all who were touched by his extraordinary gifts."
Also on October 5, 2011, Apple's corporate website greeted visitors with a simple page showing Jobs's name and lifespan next to his greyscale portrait. Clicking on Jobs's image led to an obituary that read

If you would like to share your thoughts, memories, and condolences, please email rememberingsteve@apple.com
Statement from Steve Jobs’ family

In his public life, Steve was known as a visionary; in his private life, he cherished his family. We are thankful to the many people who have shared their wishes and prayers during the last year of Steve’s illness; a website will be provided for those who wish to offer tributes and memories.We are grateful for the support and kindness of those who share our feelings for Steve. We know many of you will mourn with us, and we ask that you respect our privacy during our time of grief.
Apple CEO Tim Cook today sent the following email to all Apple employees:
Team,
I have some very sad news to share with all of you. Steve passed away earlier today.
Apple has lost a visionary and creative genius, and the world has lost an amazing
human being. Those of us who have been fortunate enough to know and work with Steve have lost a dear friend and an inspiring mentor. Steve leaves behind a company that only he could have built, and his spirit will forever be the foundation of Apple.
We are planning a celebration of Steve’s extraordinary life for Apple employees that will take place soon. If you would like to share your thoughts, memories and condolences in the interim, you can simply email rememberingsteve@apple.com.
No words can adequately express our sadness at Steve’s death or our gratitude for the opportunity to work with him. We will honor his memory by dedicating ourselves to continuing the work he loved so much.
Tim

Apple Inc. co-founder died Wednesday at the age of 56


Screen grab from the Apple website


Steve Jobs, who sparked a revolution in the technology industry and then presided over it as Silicon Valley's radiant Sun King, died Wednesday. He was surrounded by his family. The incandescent center of a tech universe around which all the other planets revolved, Jobs had a genius for stylish design and a boyish sense of what was "cool." He was 56 when he died, ahead of his time to the very end.
According to a spokesman for Apple Inc. - the company Jobs co-founded when he was just 21, and turned into one of the world's great industrial design houses - he suffered from a recurrence of the pancreatic cancer for which he had undergone surgery in 2004. Jobs had taken his third leave of absence from the company in January of this year, and made the final capitulation to his failing health on Aug. 24, when he resigned as Apple's CEO. After 35 years as the soul of Silicon Valley's new machine, that may have been a fate worse than death.
Jobs died only a few miles from the family garage in Los Altos, Calif., where he and fellow college dropout Steve Wozniak assembled the first Apple computer in 1976. Jobs transformed the computer from an intimidating piece of business machinery - its blinking lights often caged behind a glass wall _ to a device people considered "personal," and then indispensable.
Jobs was the undisputed "i" behind the iMac, the iPod, the iPhone and the iPad, and there was very little about his personality that was lower-case. According to Fortune magazine he was considered "one of Silicon Valley's leading egomaniacs," but Jobs also cultivated a loyal coterie of ergomaniacs - ergonomic designers who created the sleek stable of iHits - whose devotion to him was the centrifugal force holding Apple together. Shares of the company's stock plunged 22 points after Jobs announced his final medical leave on Jan. 17.
"A hundred years from now, when people talk about Bill Gates and Steve Jobs, Gates is going to be remembered for his philanthropy, not technology," said tech forecaster Paul Saffo, "the same way people remember Andrew Carnegie for the money he gave to education, not the fortune he made in steel. But what they're going to say about Steve Jobs is that he led a revolution."
It was a war waged on three fronts - computers, music and movies - and with each successive Apple triumph, Jobs altered the landscape of popular culture. With its user-friendly interface and anthropomorphic mouse, the Macintosh forever changed the relationship between humans and computers. After acquiring Pixar Animation Studios in 1986, Jobs became the most successful movie mogul of the past half-century, turning out 11 monster hits in succession. The 2001 smash "Monsters, Inc." could just as easily have been the name of the company.
But it was with the iPod - originally released just six weeks after the cataclysmic events of Sept. 11, 2001 - that Jobs engineered another tectonic shift in the digital world. The transistor radio had untethered music from the home, and Sony's Walkman had made recorded music portable. With one of the world's premier consumer electronics businesses, and a music label of its own, Sony was poised to dominate digital distribution for decades.
But it didn't happen. Jobs took a digital compression format that had been around for a decade, synced it to Apple's new digital download service, iTunes, and with the iPod changed a system for delivering music to consumers that had been in place since Edison invented the phonograph.
It was Jobs' genius for simplicity that led to a pricing standard of 99 cents per song that remained unchanged for eight years, despite initial resistance from the music studios. And it was his irresistibility as a pitchman that brought the record labels so completely into line that iTunes now is the dominant player in the digital music business.
A man of sometimes confounding contradictions, Jobs once traveled to India and shaved his head seeking spiritual enlightenment. But he also brought a fierce urgency to his business dealings, often screaming at subordinates and belittling foes. Feared and revered, Jobs commanded the respect of his competitors, loyalty from the engineers he goaded relentlessly, and loathing from almost everyone.
"It's not easy to like Steve close up _ he does not suffer fools gladly," said Bob Metcalfe, founder of the networking giant 3Com and an old friend of Jobs. "But I like him very much. His energy, and standards, and powers of persuasion are amazing. He is the epitome of a change agent."
Whether by accident or design, Jobs created such an intense aura of mystery about what he was on to _ and up to _ that he developed a cult of personality, sometimes called "Macolytes." His appearances at the annual MacWorld Expo were often an occasion for the rollout of some new product that Jobs - with a rock star's sense of theatricality - had managed, until that very moment, to keep top secret. To his loyal fans, it seemed to matter little that Apple's new device inevitably cost far more than its competitors'.
And while his personal fortune - often the measure of success among the tech elite - was dwarfed by peers such as Larry Ellison of Oracle Corp. and Bill Gates of Microsoft Corp., Jobs' matchless record of innovation over three decades made him the coolest computer nerd in the valley.
"He reinvented the paradigm of what computing is three times with the Apple II, the Macintosh and the iPhone," said Mike Daisey, who built a theatrical performance, titled "The Agony and the Ecstasy of Steve Jobs," around a life notable for its highs and lows. "And to be clear, the rest of the tech industry reinvented the paradigm zero times."
Jobs insisted the products Apple brought to market not merely be great, they must be "insanely great." It was his focus on design that allowed Apple to maintain a hold on the imagination of the public that often was disproportionate to the company's market share.
Apple's product lines were a projection of his sense of style, transforming the boring, putty-colored boxes of computers sold by competitors like Dell Inc. and International Business Machines Corp. into a compote of fruit and berry-flavored iMacs. Yet Jobs himself rarely deviated from a single, Mao-like uniform of blue jeans, black turtleneck and sneakers, turning that into a kind of meta-fashion statement: Think different. Dress the same.
His first brush with pancreatic cancer did nothing to slow Jobs down during the final years of his life. If anything, he seemed more driven than ever. Speaking to the Stanford University graduating class of 2005, a year after surgery to treat his illness, Jobs said, "Remembering that I'll be dead soon is the most important tool I've ever encountered to help me make the big choices in life. Your time is limited, so don't waste it living someone else's life."
In a curious way, Jobs started his own life by living someone else's. He was given up for adoption by his biological parents - Joanne Schieble and Abdulfattah Jandali, a Syrian-born graduate student - shortly after his birth in San Francisco. His parents eventually married and had a daughter, but it was not until Jobs and his long-lost biological sister were both grown that he discovered she was the best-selling novelist, Mona Simpson.
Even growing up in the profoundly non-conformist '60s, Steven Paul Jobs always seemed different than his peers. His adoptive parents - Paul and Clara Jobs, a machinist and an accountant in middle-class Mountain View - took every utterance of their restless son seriously. When Steve declared he wasn't learning anything at his junior high school, and told them he refused to return the following year, the family abruptly moved to Los Altos so he could attend Homestead High.
It was there that he telephoned William Hewlett, president of the electronics manufacturing giant Hewlett-Packard Co., and asked him to donate parts for one of Steve's engineering projects at school. Hewlett was so impressed that he offered the teenager a summer job.
If Jobs already had a sense of his own manifest destiny, he didn't reveal it. After a single semester at Reed College in Portland, he dropped out of school, then spent the following year learning the I Ching _ a Chinese system of symbols used to find order in chance events _ while dropping acid and dropping in on Reed's philosophy classes.
He took a job with the computer game maker Atari in 1974, but stuck around just long enough to save money for a pilgrimage to India. After tramping around in traditional Indian garb and a backpack _ his shaved head and spectacles giving him a vaguely Gandhi-like appearance _ Jobs returned to the San Francisco Bay Area, spiritually uplifted and flat broke.
He stumbled upon Wozniak in 1975, presiding over a geekfest called the Homebrew Computer Club in Palo Alto, Calif., and convinced the brilliant Woz to start a company with him. Jobs would remain the man behind the curtain, creating Apple's razzle-dazzle, but unlike the Wizard of Oz, Jobs welcomed attention.
"Every time I designed something great . . . he would say, 'Let's sell it,' " Wozniak recalled once at an Intel Corp. conference. "It was always his idea to sell it."
Jobs decided to name the startup Apple, after the Beatles' record company. From the outset, he made no secret of his appetite, conspicuously taking a bite out of the Apple logo. He and Wozniak trumped Microsoft's early operating system by adding a mouse and a pioneering graphical user interface that allowed users to stop typing commands in bewildering DOS code. It took Microsoft until 1985 to counter with its clunkier Windows operating system.
But in one of his rare miscalculations, Jobs refused to license Apple's interface to other computer makers, and it quickly became a Microsoft world. As a business, Apple computers were a boom and bust operation. The sophistication - even artistry - of the engineering created a fanatical following for the company's products, but the Apple faithful remained a small, if vocal, minority.
Jobs needed a businessman who could turn his ideas into gold, and found him in Pepsi CEO John Sculley. When Sculley wavered, Jobs reeled him in with his most famous seduction line: "Do you want to spend the rest of your life selling sugared water to children," he asked Sculley, "or do you want a chance to change the world?"
But it was Sculley who rocked Jobs' world, outmaneuvering him in Apple's boardroom, and forcing him out of the company in 1985. "What can I say?" Jobs admitted later. "I hired the wrong guy. He destroyed everything I spent 10 years working for. Starting with me."
With the fortune he made on the sale of his Apple stock, Jobs immediately started another computer company. But NeXT - which started as a manufacturer of overpriced workstations, and ended as a designer of overpriced operating systems - represented for Jobs a decade of wandering through the wilderness.
He didn't make the journey alone, marrying Laurene Powell in a Zen Buddhist ceremony in 1991. The couple had three children - Eve, Erin and Reed - and Jobs had a fourth child from a previous relationship with Chris-Ann Brennan. Lisa Brennan-Jobs, now 33, was born around the same time as Apple's third-generation computer, which was marketed as the Lisa.
By 1995, NeXT still had not acquired the type of industry buzz that Jobs was accustomed to creating. The workstations had a sheen of technological sophistication, but were so expensive to produce that few companies could afford to buy them.
Apple, meanwhile, was faring even worse. Its share of the personal computer market had dwindled so alarmingly that the company was even considering a switch to Microsoft's Windows NT operating system. Inside Apple, that was viewed as such a full blown retreat that when NeXT's operating system was offered as an alternative to Apple CEO Gilbert Amelio, he grabbed it. Apple paid $429 million for NeXT, but taking Jobs back as an adviser turned out to be far costlier to Amelio than the price tag.
Jobs derided the CEO behind his back as a "bozo," helping to set the stage for Amelio's ouster a few months later. Insisting he had nothing to do with Amelio's firing, even as he was installed as the company's "interim" CEO, Jobs hand-picked a board of directors loyal to him, then set about returning Apple to profitability.
Apple was still teetering on the brink of extinction in 1997, with just a tiny fraction of the PC business, when Michael Dell, Jobs' PC doppelganger at Dell Computers, sneered that if he ran Apple he would "shut it down and give the money back to the shareholders."
Never one to back away from a fight, or to forget a slight, on the day that his company's market capitalization surpassed Dell's in January of 2006, Jobs sent a congratulatory memo to Apple employees _ though by that time, nine years later, he may have been the only one still keeping score. "It turned out that Michael Dell wasn't perfect at predicting the future," Jobs gloated. "Based on today's stock market close, Apple is worth more than Dell."
Jobs' resurrection at Apple remains one of the most dramatic turnarounds in the annals of American business. Until his rebound was cut short by cancer, it stood as a near-perfect rejoinder to the F. Scott Fitzgerald aphorism, "There are no second acts in American lives." As a young man, Jobs merely helped lead the world into the computer age. In the final years of his life, he turned Apple into a kind of beloved nation-state: a company whose reputation for innovation gives it a reach far exceeding any worth calculable on a balance sheet.
"Steve Jobs has a way of making people believe," 3Com's Metcalfe told the San Jose Mercury News in 1997. "It's called the reality distortion field. Whenever you get near him, no matter how mean he might be, there's this field that distorts reality. You are made to feel that if you disagree, you are a jerk."
The iPhone was an example of the kind of upside down world Jobs could create with his distortion field. Long lines formed outside Apple stores before the first iPhones went on sale in 2007, and the device received endless _ mostly rhapsodic _ coverage in the press. Yet even after the fourth-generation iPhone was released in 2010, Apple's share of the U.S. cell phone business stood at 22 per cent, behind Android and RIM's BlackBerry.
Even Apple stores, which were originally created to provide showplaces for the company's product line, turned into tech temples, and became so popular they generated the most profit per square foot of any retail outlet in the country.
Though computers remain Apple's most profitable product line, Jobs sought to lead the company away from what had become, increasingly, a commodity business. He made the transition from computer niche player to consumer electronics giant official in 2007, dropping the word "Computer" from what is now simply Apple Inc.
For a decade, Jobs was the only CEO of two major American corporations, running Apple (as the iPods got smaller and smaller), and Pixar (as the box office hits got bigger and bigger). With comparatively little fanfare, Jobs annexed this second fiefdom when "Star Wars" filmmaker George Lucas decided to cast off his digital animation division. Jobs scooped it up cheap in 1986, and within two years, Pixar had won its first Oscar for the animated short film "Tin Toy," director John Lasseter's five-minute forerunner to "Toy Story."
"Toy Story," the first fully computer-animated feature, followed in 1995, and it marked the beginning of a box office run so successful that Jobs was able to sell the company to Disney in 2006 for $7.4 billion in stock. That transaction made him the largest single shareholder in the world's dominant media conglomerate.
At his death, Steve Jobs sat at the summit of an information and entertainment empire, through which he controlled a large part of the culture's digital means of production _ and with the iPhone and iPad, its reproduction. He tamed Leopard; befriended Mickey Mouse; kept music and movies, and even Pluto, all spinning in their separate orbits, so they intersected, but rarely collided.
Jobs did all that through the force of his personality, which was sometimes maddeningly abrasive, and the perfection of his vision, which often seemed limitless. But now, suddenly, the bright star at the center of Silicon Valley's universe has gone out.

Tough for Apple selling iPhones in India: IDC

MUMBAI: Apple Inc, the world's largest smartphone maker, is having trouble selling iPhones in India, a market with 602 million active subscribers.

Apple, which will introduce a new iPhone version tomorrow, ships fewer handsets to the world's second-largest mobile-phone market than it does to Norway. Nokia Oyj and Research In Motion Ltd sell more devices in India, where smartphone shipments are forecast to grow almost 70 per cent a year until 2015, helping mitigate their market-share losses in the US and Europe.

Sales for the world's biggest company by market value are hindered because Indian wireless carriers, which started third- generation networks this year, have yet to offer nationwide services fast enough to take advantage of iPhone features, said Gus Papageorgiou, an analyst at Scotia Capital Inc. in Toronto.

"Networks in India are just not conducive for Apple -- 3G networks aren't quite where they are in Western Europe and North America," he said. "RIM got the right product, the right timing, the right app."

Apple shipped 62,043 iPhones to India in the quarter ending June 30, or fewer than to Norway, Belgium or Israel, according to estimates by Framingham, Massachusetts-based researcher IDC.

BlackBerry Messenger

Apple accounted for 2.6 per cent of India's smartphone shipments in the quarter ended June 30, trailing RIM's 15 per cent, Samsung Electronics Co.'s 21 per cent and Nokia's 46 per cent, IDC estimates.

"The iPhone only really works when you have Wi-Fi," said Kshma Shah, a 25-year-old interior designer in Mumbai. "3G has barely started in India, and on 2G you just can't have the same experience."

The world's largest maker of tablet computers also shipped about 21,150 iPads to India in the same period, or 0.2 per cent of its global total, according to IDC.

RIM's BlackBerry Messenger instant-messaging service is popular because it was one of the first, and it functions well on networks a generation behind the speeds offered in the US and Europe, Papageorgiou said.

"Only a few of my friends have iPhones," said Mahafareenn Sarkari, a 25-year-old dance instructor in Mumbai. "BlackBerry is where everybody is, so it made sense for me to be on it, too."

RIM's 'wave'

RIM, which entered India in 2004, plans to extend its lead over Apple after expanding distribution to 80 cities from 15 starting last year, said Krishnadeep Baruah, director of marketing for Waterloo, Canada-based RIM in India.

"We want to ride this wave," Baruah said. "This is really the time to expand into the emerging towns and cities."

That contrasts with RIM's struggles worldwide, with its stock falling 61 per cent this year. At least five RIM executives have left since March, and the company sold half as many PlayBook tablets in the second quarter as analysts had forecast on average.

Nokia has more than 200,000 outlets in India and offers 13 smartphone models, Vilsha Kapoor of New Delhi-based Six Degrees PR, hired by Nokia to handle public relations, said in an e-mail.

The Espoo, Finland-based company is seeking to reverse its global performance. Shares are down 45 per cent this year, and it is eliminating at least 7,500 jobs as Apple takes global market share and Asian competitors push the price of smartphones below $100.

68 percent growth Smartphone shipments in India are poised to jump almost eightfold, or an average of 68 per cent a year, to 81.5 million units by 2015, according to IDC.

Apple products aren't as accessible in India because consumers can't buy iPhones, iPads and iTunes songs from company stores or its website. Apple sells through licensed resellers, including a Reliance Industries Ltd subsidiary and Tata Group's Croma.

"Apple continues to invest in India as a growing market for the company," Alan Hely, a London-based spokesman for Apple, said in an e-mailed response.

Steve Dowling, a Cupertino, California-based spokesman for Apple, declined to comment. In China, Apple operates six stores, including its highest- grossing ones worldwide. Revenue in China, Taiwan and Hong Kong increased six times to $3.8 billion in the quarter ended June, Apple Chief Executive Officer Tim Cook said in July.

'Pathetic' advertising

Apple may be relying more on word-of-mouth among India's wealthy, said Harish Bijoor, who runs his own brand consulting firm in Bangalore.

"They don't see a big enough market for their products to make it worthwhile," Bijoor said. "They've barely done any advertising. It's pathetic, really."

Cost is also an issue in a country where the World Bank estimates that about 900 million people live on less than $2 a day.

The cheapest iPhone 4 costs $705 at Reliance's iStore, while the cheapest iPad 2 sells for about $603. In Apple's US online store, the iPhone 4 starts at $199 with an AT&T Inc contract and the iPad starts at $499.

BlackBerrys under $200 made up 40 per cent of their shipments in India in the quarter ended June 30, said TZ Wong, an analyst for IDC.

"I don't think Apple is a brand for the masses," said Ajit Joshi, managing director of Croma, which also sells other brands besides Apple. "It's a brand for the classes."

The masses may be getting wealthier as India's new five- year plan aims for 9 percent growth in gross domestic product. India last year joined the top dozen countries with the most millionaires, according to a report by Capgemini and Merrill Lynch Global Wealth Management in June.

Salaries in India also are set to rise the most in the Asia-Pacific region this year, according to an Aon Hewitt LLC survey released in March 8.

"It's a brand-in-waiting," said Viren Razdan, managing director of consulting firm Interbrand's Mumbai office. "Apple is waiting for infrastructure and consumer maturity."

iPhone 4S: Opportunity for Samsung, HTC?

TAIPEI/SEOUL: Asian smartphone makers have a chance to exploit a rare letdown from pacesetter Apple Inc after the new iPhone 4S failed to wow fans and investors, leaving Android rivals better placed to grab market share.

The iPhone -- introduced in 2007 with the touchscreen template now adopted by its rivals -- is the gold standard in the booming smartphone market, and its sales have dealt a blow to ambitious plans of many competitors.

Shares of Samsung Electronics , HTC and LG Electronics , who all make phones using Google Inc.'s Android operating system, jumped on Thursday.

These companies could now aggressively promote their flagship high-end models ahead of Christmas, potentially helping boost sales in the most crucial shopping season.

"Apple no longer has a leading edge, its cloud service is even behind Android; it can only sell on brand loyalty now," said Gartner analyst KC Lu in Taipei.

"Users may wait to buy the next iPhone, if they can't wait, they may shift to brands with more advance specs."

The new iPhone 4S is identical in form to the previous model, disappointing fans who had hoped for a thinner, bigger-screened design of a product that had not been updated for more than a year.

While the device's high-tech wizardry such as voice commands -- for sending messages, searching for stock prices and other applications -- caught the attention of many analysts, it might not be enough to make it a must-have for consumers.

"Major concerns for Samsung had been that its smartphone momentum will decelerate with Apple's new iPhone, but that's now less of a concern as the new iPhone failed to excite many," said Kim Young-chan, an analyst at Shinhan Investment Corp in Seoul.

Shares of Taiwanese smartphone maker HTC rose 0.6 percent in a generally weaker Taipei market, while Korean rivals Samsung and LG Electronics climbed 1.2 percent and 1.7 percent respectively, in a broader Korean market down 2 percent.

Top selling smartphone
Apple's iPhone is the No. 1 selling smartphone in the world. But phones based on Google's Android, which is available for free to handset vendors such as Samsung, HTC, LG Electronics and Motorola , have a greater combined market share than Apple's iPhones.

"There are still many consumers who don't have the iPhone experience, and Apple still has a lot of markets and carriers to enter, so when there's a new model with better specs, it helps to lift shipments," said Ming-chi Kuo, analyst at Concords Securities in Taipei.

"The iPhone 4S targets users who are expiring on their two-year 3GS contract."

Globally, iPhone shipments rose 9.1 percent in the second quarter while Nokia's plummeted more than 30 percent, handing the top spot to Apple with a market share of 18.4 percent, according to IHS iSuppli. Samsung, whose shipments grew faster, is coming on strong with a market share of 17.8 percent.

The iPhone 4S will cost $199 in the United States, with pre-orders starting Oct. 7. Apple also cut the price of the older iPhone 4 to $99, and said an even older "3GS" model will be available for free to customers who sign a long-term contract.

Suppliers take a beating
Apple's biggest supplier Hon Hai was down 1.9 percent, while casing company Foxconn Technology

fell 6.9 percent. Camera module maker Largan Precision shed 6.6 percent. The broader market lost 0.8 percent.

"The casing companies should be the most-hit, correcting from the previous rise, because the market has expected a metal case for the new iPhone," said Mike Fang, a fund manager of Paradigm Asset Management.

Fang did not expect iPhone shipments to drop on the disappointment over its appearance however, as a cheaper price would allow sales to expand at a faster pace.

"The demand is still there from users upgrading from iPhone 3GS because it's two generations behind," he said.

In Japan, the country's second-largest mobile carrier KDDI will sell Apple's new iPhone, ending rival operator Softbank's highly profitable reign as the sole provider in Japan.