And Jobs' intolerance for leaks has bred a culture of secrecy that, although effective in thwarting competitors, has also led some to criticize the company's lack of transparency about who will succeed Jobs and, more recently, the severity of his illness.
His stubborn stance against relinquishing control over such things as content pricing at Apple's iTunes store also has bruised many egos in the entertainment business, including those of the very partners he needs to succeed as consumers increasingly look for entertainment in all manner of devices.
"Their extraordinary focus on controlling their own destiny makes them a difficult company to work with," said Baker of Gartner. "It's led to issues with several media companies."
One such power struggle with NBC Universal in 2007 over the pricing of TV shows on iTunes led to a one-year boycott that left Apple without some popular shows, including "The Office," "Heroes" and "30 Rock."
NBC, whose videos had accounted for 30% of TV show sales on iTunes, wanted the ability to charge a range of prices for its shows. Apple argued that pricing each episode at $1.99 would make things simpler and less costly for consumers.
Apple relented in September by introducing a tiered pricing structure -- from 99 cents for older shows to $2.99 for high-definition versions of newer episodes.
But the delay cost Apple, Baker said. During the yearlong hiatus from iTunes, NBC struck a deal with Amazon.com Inc. to distribute its shows. It also teamed with News Corp. last year to launch Hulu, an ad-supported service that lets viewers watch TV shows online free of charge.
"Hulu has clearly become a threat to Apple for TV shows," Baker said.
Another challenge is Apple's emphasis on premium pricing, a tradition that comes from Jobs' long-standing belief that consumers will pay more for products that are better designed and easier to use. Some analysts are wondering whether that pricing model is out of tune with the current recession.
"The economy remains their No. 1 challenge," Ernst said. "They produce products that are largely discretionary. You can pick up a cellphone now for $9.99. Or you can spend a couple hundred bucks on an iPhone. Both make calls. By no means is the iPhone necessary."
That didn't prevent more than 1 million people from snapping up the company's newest iPhone 3G S within three days after the device hit stores June 19. Like the previous two iPhone releases, the latest was met with long lines of eager buyers such as Dennis Martin.
