Signs point to Apple adding to their 30 million Mac users via ‘iPod Halo Effect’
Tuesday, October 26, 2004 - 09:36 AM EST"Some analysts say that bringing the iPod to Windows was the marketing move that made the iPod the white-hot commodity it is today. But could it do more? While analysts say it is too early to tell whether the iPod will directly boost Mac sales, there are signs that it could tease users away from Windows. Rod Bare, an Apple analyst at Morningstar, forecasts that iMac sales will grow from 3.3 million at the end of 2004 to 4 million by 2006, which would mean a slight increase in Apple’s computer share," Red Herring reports.
"Apple’s chief financial officer Peter Oppenheimer said in the fourth quarter earnings call that the iPod’s popularity has upped Mac sales. Mr. Oppenheimer said that the number of Mac buyers at Apple stores who are first-time computer users or who are switching from Windows holds at a steady 45 to 50 percent," Red Herring reports. "There is a lot of room for Apple to grow. Apple’s PC share has been falling since 1995. It currently holds a slim but steady 2 percent - an estimated 30 million - of the worldwide PC market."
"At the very least the iPod will expose the Mac to Windows users. Charles Wolf, an analyst at Needham & Company, said that up to 95 percent of the iPod’s owners are Windows users. 'If they like the iPod, if they think it’s got a great interface they might go to Apple and take a look at the new iMac, the new PowerBook,' said Van Baker, a consumer electronics analyst at Gartner in San Jose. 'From that perspective it presents an opportunity to leverage the brand.' In addition, other analysts said that the iPod’s success was a sign that Apple was shifting its focus to consumer electronics," Red Herring reports.
"'The PC is no longer driving the firm and [the iPod] is really transforming the company,' said Rob Enderle, principal analyst with the Enderle Group in San Jose. 'If we draw a line and show their focus on consumer electronics and PCs, eventually they would move solidly into consumer electronics. Something like that won’t happen overnight, but that is the path they are on.' Morningstar’s Mr. Bare cautioned investors not to get carried away by the iPod hype. 'Apple does need to maintain the computer business, they have so much invested in it,' he said," Red Herring reports.
Full article here.
Related MacDailyNews articles:
Mac market share primed to explode? If not now, when? - September 25, 2004
Apple's iPod 'Halo Effect' revs up for back-to-school season - August 23, 2004
iPod Halo Effect shines upon another reviewer: 'it just works, even on a Windows PC' - August 06, 2004
Apple's 'iPod Halo Effect' begins to shine - August 03, 2004
iPod and iTunes fans migrating from Windows to Macintosh - July 16, 2004
Analyst: Apple iPod 'Trojan horse that's beginning to fuel migration of Windows users to Mac platform' - July 16, 2004
Apple's 'iPod Halo Effect' materializes, restarting growth in core Mac units - July 15, 2004
iPod is Apple's Trojan horse with a halo - April 15, 2004
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The iPod Halo Effect is more than just people liking iPod/iTunes. It's the coolness factor and brand recognition associated with the iPod. Apple is a hot company right now with cool products. People have noticed.
Now if only Apple would advertise OSX.