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) -- Despite a few hang ups,


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iOS 4.2 mobile operating system update is seen as another positive move for the company.

Apple started offering free iOS upgrades to owners of iPads, iPod Touches and iPhones late Monday. The new software is designed to enable wireless printing from these devices, better HTML5 capability and AirPlay, a wire-free media sharing system.

But not all that was promised by Apple worked as expected. Some observers, including

Daring Fireball's

John Gruber found the hotly anticipated AirPlay service

not perfectly wonderful

at sharing videos from an iPhone to Apple TV for full-screen viewing.


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going to be

the killer feature for Apple TV," Gruber wrote on his blog, referring to the expected improvements that will eliminate the hitch.

But some Wall Street analysts saw the iOS upgrade as giving Apple another leg up on the rival mobile device pack including


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Android and


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Symbian .

"This update continues to press the boundary of what portable computing devices are capable of and extends Apple's already substantial advantage over competitors in our opinion," wrote JPMorgan analyst Rod Hall in a research note Tuesday.

Apple shares were down $2.14 to $311.22 in early trading Tuesday.

--Written by Scott Moritz in New York.>To contact this writer, click here: Scott Moritz, or email: follow Scott on Twitter, go to>To send a tip, email:


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