“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.
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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.