The apparatus of the present invention preferably comprises an image sensor, an orientation sensor, a memory and a processing unit. The image sensor is used for generating captured image data. The orientation sensor is coupled to the image sensor, and is used for generating signals relating to the position of the image sensor. The memory, has an auto-rotate unit comprising program instructions for transforming the captured image data into rotated image data in response to the orientation sensor signals. The processing unit, executes program instructions stored in the memory, and is coupled to the image sensor, the orientation sensor and the memory. The method of the present invention preferably comprises the steps of: generating image data representative of an object with an image sensor; identifying an orientation of the image sensor relative to the object during the generating step; and selectively transferring the image data to an image processing unit in response to the identifying step.