Apple iPod’s ‘Halo Effect’ on Mac market share too early to measure

“Apple Computer Inc.’s strategy of getting iPod buyers to also buy Apple desktop computers doesn’t seem to be working, according to an industry research report. The Cupertino computer and consumer electronics maker has seen its share of the personal computer market drop to 2.8 percent, from 4 percent a year earlier, according to IDC, of Framingham, Mass.,” Robert Mullins reports for American City Business Journals.

“Although the iPod portable music player, and its recently released little brother, the iPod Mini, have been strong sellers, that has not seemed to help sales of desktop computers, particularly the recently released G5 desktop computer, said Andrew Neff, an analyst with investment bank Bears Stearns & Co. Inc., of New York City. ‘Our concerns are that the G5 cycle has disappointed, Apple is still ceding PC share, and at some point iPod mini supply will catch up with demand, which could derail the stock’s momentum and temper further earnings per share [growth],’ Neff wrote in a note to investors released Monday. Supplies of the original iPod, the one in the white case, have already caught up with demand, he said,” Mullins reports.

Full article here.

MacDailyNews Take: We weren’t aware there was a time limit for measuring iPod’s halo effect for increasing Mac market share. It seems too early to us to be able to make a valid determination as to whether iPod will translate to Mac market share increases. The G5 sales “disappointed” because Apple CEO Steve Jobs promised 3GHz G5’s “within the year” at the introduction of the 2Ghz Power Mac’s in June 2003. That put a damper on sales to individuals who, we believe, are waiting for the speed bump before buying their new Power Mac G5’s. Some analysts are obsessed with “market share” and cannot see the forest for the trees. What cannot be overlooked is that Apple latest earnings report shows a 5 percent increase in CPU units over the year-ago quarter.

62 Comments

  1. Truly anal-ytical logic: “Uhmm, I am here at Apple Store to buy an iPod. What the heck, let’s get a dual G5 as well”

    Yeah, I see that happening. Whatever. Typical market anal-yst: truly in touch with how things work with real humans.

    It amounts to wondering “Why a Windows user who got an iPod in January does not buy a G5 in February? Uhmmm, the iPod trojan horse must be a failure then.”

  2. No kidding. Any effects the iPod is going to have will be seen in another year or two when people go out to purchase another computer. We just might see a decent sized increase in sales. The trick will be whether or not the analysts remember that this is due to the iPod’s influence or whether they will have forgotten by then. ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  3. on another note, some could be waiting for the new revs to come out so they can afford the rev a G5 ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

    I need to dump my dual 1.4 quick

  4. We’ll be right back here again this same time next year reading this same exact news from MDN, and a year after that, and a year after that, and a year after that…

  5. With the complex Wintel experience the majorty expects it to be complex to switch to Apple Macintosh. On the workfloor Apple is the outsider in these days. Apple allmost missed it, allmost means it takes time to recover.

  6. Apple’s computer line sucks. An ancient funny looking design at the low end and a pricey cheese grater at the upper, with a stylish and underpowered model in between. Revamping the line (even calling the g4 processor something else) concurrent with the increase in ipod marketing would have been perfect. Too late now.

    The idea that hundreds of thousands of buyers are waiting for the 3ghz g5 is ridiculous. The average pc goes out the door for $800. You want to sell a lot of computers, spread osX far and wide, and encourage developers to design for your platform? Figure out how to crack that market. It is certainly not too late to do that, but it requires a major tuning of the inexpensive end, where year to year sales have actually decreased. If you don’t want to sell a lot of computers, you can pretty much follow Apple’s plan, sit back, and relax.

    The only obsession with market share is MDN’s, and some macophiles, insisting that it doesn’t matter. The article’s quoted stats are a 30% decrease in market share, because while Apple was selling 5% more, everyone else was on the money train and selling many, many more. Apple makes a huge margin compared to vanilla box makers, but eventually that shrinking, uh, *market share* will matter, a lot.

  7. Where are ads for Macs? I see ipod ads all the time. Has Apple forgot Mac with the ipod in the spotlight? In order to sell computers, Apple should dig into their big stash of money. Can you sell products without advertising? Apple hasn’t had a good Mac ad for years.

  8. The pundits so-called analysis of Apple’s market share relies upon new units out the door (including Windows and Linux based Point of Sale terminals in supermarkets) – and totally disregards that fact that the average Mac owner keeps their computer in service long after the Windoz crowd has dumped their machine for “newer, faster”.

    Under the current market share analysis – a four year old Mac that is used everyday (and there are lots!) gets the same weight as a four-year old 1st generation Pentium sitting unused in a basement closet.

    A better indicator of “market share” would be “actual home share” or “actual business share”. How many homes have a Mac in the mix now? How many businesses (like mine) are 75% Mac and looking to drop Windoz completely?

    These stats would be far more relevant…. and let’s not kid ourselves, we know Macs are great, far more capable than Windoz, and can talk and do business with Windoz… but Apple has done a poor job of communicating this.

  9. I do have an opinion, but not on the news. My opinion is that you are a self-important blowhard.

    I can’t really see how you saying “Apple’s computer line sucks” has much to do with the news topic at hand. Looks like you just wanted an opportunity to shovel your bullshit all over the site. Well, good job.

  10. Glick, I think that numbers between 5 and 15% have been floated for Mac home use. It’s a big ballpark, but it makes sense. My point is that a)market share has gone down, regardless of the tweaked number we use, and b)that is because the mac product line……….sucks.

    what does apple have to do to get you our of your 4 year old mac? Should they try?

  11. James, that is why I said “about it” not “about me”, since that was already evident.

    I don’t know if I am a self important blowhard (so hard to get perspective you know), but I do know that since I am not sitting next to you breathing latte breath into your space, you can just go pound sand.

    Still friends I hope.

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