iPod and iTunes fans migrating from Windows to Macintosh

“Music could prove to be Apple Computer Inc.’s saving grace, as it indirectly puts the company back on track as a credible, albeit still tiny, player in the personal computer market,” Ian Karleff reports for The Financial Post. “‘We have been waiting for signs that the anticipated halo effect from Apple’s retail stores and iPod would materialize. This quarter’s results provided the first definitive data point, suggesting that Apple’s core businesses may not be destined to continual decline,’ said First Albany Capital analyst Joel Wagonfeld.

“First Albany was one of three brokerages to upgrade the stock on the back of the quarterly results, and noted that gross profit margins also surprised on the upside as growth in the company’s personal computer business mitigated the margin dampening effect of iPod Minis,” Karleff reports.

Full article here.

22 Comments

  1. Halo Effect? I think it is over rated. Here is my analysis. Oh dear. I hope this doesn’t make me an “analyst”. Guess not – no money ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

    This was written to a journalist who overstated the topic a bit, too (probably parroting the above story). I also did not have the time to write it brilliantly:

    “You seem to have decided that the only reason that Apple is doing well currently is because of the “Halo Effect” of the iPod. No doubt iPod has been a raging success, and no doubt that that success can not hurt Apple in the market. But possibly you could explain just *how* iPod might be helping so dramatically? The simple fact is that iPod works on Wintel PCs, and the superb iTunes software is “the best program ever written for the PC”. In other words, as far as music listening goes, the PC is an equal platform to the Mac.

    Here are the real reasons:

    Apple stores. There are about 100 now. For the first time, it is actually possible to walk into a retail outlet, play with *all* the equipment (which is working properly, and has the latest OS installed), browse the software section, and make a selection. Let me repeat: FOR THE FIRST TIME. Do you think that might help sales?

    …continued…

  2. …continued…

    OS X. The old joke in the Macintosh community is a variation on the theme: “If you want to know what Longhorn will be like in 2007, buy a Mac today.” Mac OS X Panther is an astonishingly advanced operating system which is literally years in advance of anything from Microsoft. Display PDF, searching, Expose, journaling file system, Preview, iLife and etc. etc. etc. are extremely compelling. Did I mention the lack of viruses? No? Well there are zero. None. Nada. Zip. Did I mention upgrading procedures? It all happens automatically. My many year old system, released with Mac OS 8.6, is happily running the latest version of the Mac operating system, 10.3.4. And it is right up to date. To the minute. Total effort expended on my part? I have to click “OK” to install the latest upgrade. Do you think anyone else would like a virus free computing experience?

    Super Computers. Virginia Tech. US Army Research and Development Command. University of Maine. UCLA Plasma Physics. More being announced every day. These systems rank with the FASTEST COMPUTERS IN THE WORLD. Top 10 stuff. Made out of components that you can go down to your local Apple store and buy off the shelf. No tricks. No limited production run. No special order. Just plain jane Macintoshes. Do you think that might contribute to growth?

    I think if I were you, I might want to carefully research an article about Apple and their computers. Might make interesting work. It would certainly make for good reading.”

    So endeth my rant.

    Mike

  3. Go Mike. Right on. Of course, the iPod does get Apple back into the minds of Wintel users, and it shows them just how easy and simple something high-tech can be. And from there, a logical jump would be “maybe apple makes all their products this good…”.

    But yes, overall I don’t think the iPod is the #1 reason for mac sales growth.

  4. In fact… I think it’s the whole liquid-cooled computer. Can’t tell me that’s not sexy. That’s why I ordered me one. I just hope it gets here before i leave back to school…

    Current: Coming:
    G4 Dual 800 Quicksilver G5 Dual 2.5 Ghz Liquid-Cooled
    1.12 GB SDRAM 1.5 GB DDRAM
    GeForce 4 Ti 128 DDR GeForce 6800 Ultra 256 DDR
    60 gig internal HD 160 GB internal HD
    Original (2x) Superdrive 8x Superdrive
    Airport Card Airport Extreme Card
    DVI-Video Adapter

    Both will be using a 19″ Lacie Electron Blue monitor.

    Boy am I excited.

  5. Oh no! It lost the columns I made for it! ^^^

    G4 Dual 800 Quicksilver
    >>> G5 Dual 2.5 Ghz Liquid-Cooled
    1.12 GB SDRAM
    >>> 1.5 GB DDRAM
    GeForce 4 Ti 128 DDR
    >>> GeForce 6800 Ultra 256 DDR
    60 gig internal HD
    >>> 160 GB internal HD
    Original (2x) Superdrive
    >>> 8x Superdrive
    Airport Card
    >>> Airport Extreme Card

  6. Microsoft bought Lookout Software LLC, a two-person company specialized in email and desktop search. Microsoft appears to be in a race with Apple to develop the best search technology….

    From now on, M$’s desktop search system will be known as, ” Lookout ! ” and its email search function should perhaps be known as ” Lookyheah ! ” Internet Exploder longgone version? How about, ” LookAway ! ” and longgone, ” StilLookin’.”

  7. We’ve all been telling the Windozers for years about how “insanely great” the Mac is and they’ve hardley ever listened. But the iPod is finally getting their attention. Because it is so cool, so easy to use, and so well made, that they are beginning to respect Apple’s products. Three cheers for the iPod!

  8. well duh. most windows people dont think about apple and macs. they get an ipod and it works great so now they DO think about apple and mac.

    of course thats good for selling macs! thinking about is better than not even thinking about ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

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