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Thursday, 6 October 2011 - Without Jobs, Apple's gap with rivals could narrow |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Green Business Legal Deals Earnings Summits Business Video Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia Afghan Journal Africa Journal India Insight Global News Journal Pakistan: Now or Never? World Video Politics Politics Home Front Row Washington Politics Video Technology Technology Home MediaFile Science Tech Video Opinion Opinion Home Chrystia Freeland Felix Salmon Jack Shafer Breakingviews George Chen Bernd Debusmann Gregg Easterbrook Nader Mousavizadeh James Saft John Wasik Christopher Whalen Ian Bremmer Mohamed El-Erian Lawrence Summers The Great Debate Unstructured Finance Newsmaker MuniLand Money Money Home Analyst Research Global Investing MuniLand Reuters Money Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Life & Culture Health Sports Arts Faithworld Business Traveler Left Field Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Full Focus Video Article Comments (0) Remembering Steve Jobs Live coverage: The world mourns Steve Jobs Jobs "may never be equaled" Apple's visionary founder dead at 56 Obama calls Jobs a great American innovator Quotes from Steve Jobs Tributes pour in from industry icons Jobs death prompts grief at Apple stores worldwide John Abell: We all called him Steve ... Breakingviews: Jobs's extraordinary company Kevin Kelleher: Jobs gave us computers without pain Slideshow: Remembering Steve Jobs Follow Reuters Facebook Twitter RSS YouTube Read Apple's visionary Steve Jobs dead at 56 | 2:28am EDT Apple co-founder Steve Jobs dead at 56 05 Oct 2011 Steve Jobs "may never be equaled" | 05 Oct 2011 WRAPUP 1-Apple's visionary Steve Jobs dead at 56 12:21am EDT India launches "world's cheapest" tablet computer 05 Oct 2011 Discussed 347 Exclusive: Democrats push tax hikes first in deficit talks 223 About 400 arrested in Wall Street protest 136 Senate takes first step on China yuan bill Watched Apple's Steve Jobs dead at 56 Wed, Oct 5 2011 Japan tech show merges real, virtual Tue, Oct 4 2011 Steve Jobs: A Tribute Wed, Oct 5 2011 Without Jobs, Apple's gap with rivals could narrow Tweet Share this Email Print Related News Apple stumble seen opening door for rivals Wed, Oct 5 2011 Samsung targets iPhone 4S sales ban in France, Italy Wed, Oct 5 2011 New Apple iPhone fails to wow investors, fans Wed, Oct 5 2011 CORRECTED-UPDATE 2-Samsung, HTC set to gain as iPhone 4S disappoints Wed, Oct 5 2011 RIM shares yo-yo on speculation, Apple event Tue, Oct 4 2011 Analysis & Opinion Jobs gave us computers without pain Jobs, no ordinary CEO, leaves no ordinary company Related Topics Technology » Media » iPad » Steve Jobs » By Miyoung Kim and Hyunjoo Jin SEOUL | Thu Oct 6, 2011 3:01am EDT SEOUL (Reuters) - The death of Apple's inspirational leader is likely to have a deep impact on the maker of the iPod, iPhone and iPad, giving major rivals a greater chance to catch up with the technology giant. Steve Jobs' creative spirit was so closely tied to the fortunes of Apple that his death at 56 raises questions about the company's ability to keep its pipeline of transformational products running at such a fast pace. "As a technology analyst, I am sorry for his death. It was Jobs' Apple, not Apple's Jobs," said Kim Young-chan, an analyst at Shinhan Investment in Seoul. The CEOs of rivals including Samsung Electronics, Amazon, Google and Sony mourned the death of Jobs, a sign of the respect they held for the Silicon Valley legend. Investors had known about Jobs' long battle with pancreatic cancer. In August, the man known for minimalist design and marketing genius handed the reins to long-time operations chief Tim Cook. "Apple no longer has someone as creative and ambitious as Jobs that they can rely on," said Simon Liu, deputy investment officer of Polaris Group's fund unit. In Asia, the fortunes of Samsung are most closely tied to Apple. Analysts have said the South Korean conglomerate is one of the best placed companies to deliver something fresh and exciting to rival Apple. Samsung produces the closest competitor to Apple's iPad tablet computer. The two companies are scrapping for top spot in the smartphone market, having overtaken Nokia, the market leader for the past decade, in the second quarter. Apple is also Samsung's biggest customer through the sale of mobile chips and display screens. The relationship and rivalry has helped Samsung become a top global brand over the past decade with a stock market value of $115 billion -- still modest compared with Apple's $345 billion. But the relationship has also produced tensions as Samsung emerged as a credible challenger to Apple's mobile devices. The two companies have sued each other in 10 countries involving more than 20 cases since April. Samsung's Galaxy range of smartphones and tablet computers running on Google's Android operating system are seen as the main competitor to Apple's game-changing iPhones and iPads. The competition was "flummoxed" by the iPad, Jobs declared in March when he took the stage to unveil Apple's latest tablet. "They went back to the drawing boards. They tore up their designs because they weren't competitive," Jobs said. Lee Seung-woo, technology analyst at Shinyoung Securities, said Apple had transformed the industry, but its influence would wane without Jobs at the helm of the company. "Under Jobs, Apple consolidated segmented IT sectors into one big consumer market and claimed so many victims," Lee said. "Without Jobs, Apple's rivals now have some time to step up and majors such as Google, Samsung, Microsoft and Facebook will try to fill the gap." ICONIC PRODUCTS Jan Dawson, chief telecoms analyst at research consultancy Ovum, said Apple would do well in the short term as the company would roll out products Jobs had a hand in. 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. "The question is whether it can continue to launch iconic and successful products without him (in the longer term)... In the longer term, Apple risks becoming a more ordinary company without him." Jobs' influence was underlined by the outpouring of tributes from executives of the world's biggest companies. "Chairman Steve Jobs introduced numerous revolutionary changes to the information technology industry and was a great entrepreneur," Samsung Chief Executive G.S. Choi said in a statement. Howard Stringer, the chief executive of Sony Corp said: "The digital age has lost its leading light, but Steve's innovation and creativity will inspire dreamers and thinkers for generations." SYMBOLIC Jobs' death comes after Apple this week launched the latest version of its iPhone, in what was Cook's first big product introduction. However, the iPhone 4S failed to wow fans and investors and some analysts said the rare loss of momentum could give rivals room to push their products. "Jobs was an outstanding CEO and his successor Tim Cook faces a test (as to) whether Apple will be able to lead the global market as it was before," Lee Jun-hyuck, a fund manager at Dongbu Asset Management. On Thursday, Samsung's shares rose 3.9 percent, LG Electronics advanced 6.6 percent and Sony rose 3.6 percent as part of broad gains in Asian markets. Phones based on Google's Android, which is available for free to handset vendors such as Samsung, HTC, LG and Motorola, have a greater combined market share than Apple's iPhone, which is still the world's No. 1 selling smartphone. "Apple faces big challenges with the loss of Jobs and that will offer other technology companies opportunities to challenge its supremacy," said Lee at Shinyoung. (Additional reporting by Rafael Nam in HONG KONG and Faith Hung in TAIPEI; Writing by Anshuman Daga; Editing by Neil Fullick) Technology Media iPad Steve Jobs Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?)   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Contact Us Advertise With Us Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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