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. Read carefully Macinposh, I said the line sucks, and that is why the sales figures aren’t good.

    Fantastic machines, poorly marketed, the question is, is it on purpose?

  2. Unbelievably, there are a LOT of people who have no idea that Apple is still in business. At least the iPod is opening people’s eyes that Apple is alive and hopefully, they will realize that Apple has an operating system that is actually useable.

    How many people do you know have an unusable PC due to spyware, adware and constant pop-ups and lack the expertise to fix the problems? There is an unnamed percentage of market share that should be factored out of the 95% or so because their computers have been effectively trashed by viruses, trojan horses, etc. and the owners get frustrated to the point that they leave the computer that way for weeks, months or even longer. I know someone who even cancelled their internet access because of this. They sometimes see computers as a waste of time rather than a productive tool.

    We WILL eventually see an iPod halo effect.

  3. What does “pound sand” mean? Incidentally, you did ask if I had an opinion about “it,” and I assumed you were referring to the “news.” That’s why I said “I do have an opinion, but not on the news.” Duh.

    Anyway, I would also say you are a troll, but I actually like some of your posts. That said, no, we are not friends. I don’t even know you – and don’t want to.

  4. hehe Macinposh just called himself stupid….ZING.

    egarc has a point that leads to another point of mine. Those totally trashed windows pc’s are pure gold for Mac advertising. Why are there not ads that take advantage of that? A frustrated windows user, who needs a computer but now hates computing, when presented with the simple concept of security and reliability, ought to be a fish on a barbed hook.

  5. Following analysts is a sure way to lose money in the market. The way to play Apple is either broadly with the industry, or go against the emotions in the product announcement cycles. Most regular web surfers who tune in to MacSurfer’s for their nightly fix have a better understanding of Apple than the stock analysts — and I exclude those saddled with a Wintel bias. Analysts make a lot of noise and they tend to be untimely or irrelevant.

    Crappy $800 peecees tend to have a very limited lifespan and get replaced more often. They tend to have a lot of downtime and maintenance costs. It’s cheaper and faster to replace it with another $800 peecee than to repair it. Hey — that sounds like a good business plan for the chipmaker and OS seller. Want to double market share in a couple of years? Start with wooden heat sinks, zero-pitch fans, back-door macros….

  6. Hey Macinposh, we got off on the wrong foot, mostly because I said “sucks” instead of “poorly aligned” or some such wishy washy drivel, and you got pissed off about that.

    I think Apple would sell more computers if they rethought their line.

    I think it is important for them that Apple sell more computers, not less on a proportional basis as is now happening.

    I think Macs are wonderful machines, and I don’t have to go out and buy one to know that.

    I think that some of you are too thin skinned about your macophilia, and should recognise that owning one does not have to turn you into a Steve apologist.

    Pretty close to blowhardiness now, I had better stop.

  7. why do people say the G4 is a slow processor. It surfs,does email,converts songs (AAC/mp3) & writes letters fine. You wouldn’t notice the G5 if thats all you do. (yes I have played with dual g5’s) Friend of mine has 2.4ghz Pentium & we both got Photoshop Elements & when he tranforms his Photos (layers & stuff) his computer is not that much faster than my G4, but if you move the pic around when its changing you can wipe the desktop pic clean, with a G4 that never happens. He has a 128MB Nvidia graphics card so don’t tell me the G4 processor is yesterdays news just depends on what you want to do with it. In other words guys be realistic or include why its so slow, also I keep my machine probably optimized which I know a lot of you guys don’t which can slow a machine down.

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