SG Cowen survey shows evidence of a significant iPod halo effect boosting Apple Mac sales

“SG Cowen analyst Richard Chu said Tuesday that a survey of 1,400 U.S. consumers has caused him to become more positive about Apple Computer’s shares. In a research note, Chu said there is ‘evidence of a significant halo effect’ and strong market share for the iPod that is helping boost sales of Apple’s Macintosh computers,” Rex Crum reports for MarketWatch.

Chu estimates Apple will earn 31 cents a share on $3.33 billion in revenue when it reports third-quarter results tomorrow.

Full article here.

MacDailyNews Take: We await comment from Rob “iPod Halo Effect is just a myth” Enderle and Roger “I see no evidence of iPod Halo Effect” Kay with bated breath.

Related MacDailyNews articles:
Analysts expect Apple to post $3.33 billion in revenue for Q3-2005 on July 13 – July 07, 2005
Merrill Lynch: Mac sales ‘appear robust,’ expects futher evidence of ‘iPod Halo Effect’ – July 07, 2005
BofA raises Apple earnings estimates, forecasts 5.4 million iPods, 28-percent Mac growth for quarter – July 07, 2005 dubiously concludes that iPod demand has slowed, could impact Apple earnings – July 06, 2005
J.P. Morgan raises Apple estimates based on ‘more optimistic’ Mac shipments – July 05, 2005
First Albany raises Apple earnings, sales, iPod forecasts, cuts Mac mini forecast – July 05, 2005
Apple to webcast third quarter 2005 financial results conference call on July 13 – July 05, 2005
RealMoney: Apple’s iPod Halo Effect ‘quite profound,’ Macs taking good market share from Wintel – June 27, 2005
Enderle: ‘iPod Halo Effect is just a myth, same thing as having Paris Hilton visit Apple stores’ – May 02, 2005
Morgan Stanley: Apple’s ‘iPod Halo Effect’ is ‘roughly double what the market expects’ – March 18, 2005
IDC VP Roger Kay sees no evidence of Apple ‘iPod Halo Effect’ based on ‘Apple’s desktop share’ – January 10, 2005


  1. We’ll all see when the numbers are released tomorrow. If Mac sales are indeed up 25% or more year over year, then there is no way that Enderle or anyone else can deny the iPod halo effect any longer…

  2. …and if they aren´t the mac fanboys will make all the excuses we need! ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  3. I’ve said it before, and I will say it again:

    The halo effect was created with the intention of becoming a self fullfulling prophecy. It is a marketing tool. It was created to have an ice-breaker in any conversation about switching from windows to mac.

    Without talking about the ‘halo effect’ there would have been no measurable ‘halo effect’ –
    And, it has worked…

  4. Sorry, folks. It is easy to deny, because there is no way to draw a cause and effect relationship between iPods and Mac sales. There are too many confounding variables.

    For example, don’t you think that those niggling little security problems which affect one of the other popular operating systems might just have some little influence on sales? It would be at least as reasonable to talk about the Winn Schwartau Effect.

    Personally, I would need to see some pretty compelling evidence that the mind of “Joe Sixpack” connects iPod>Apple>Apple Computer>Macintosh.

    And don’t get me started on “Brands”. Brands are for cattle.

  5. While the Halo effect will produce some converts, I think its still going to be the Mac faithful who are going to produce more converts. I’ve got at least 6-7 friends who having brought an iPod and are still undecided as to what their next computer purchase will be.

    I have spent many an hour with each showing off what my Powerbook and Tiger is capable of.

    While the introduction of Intel to Apple platform is swaying some the time scale or this introduction seems to prohibitive to them.

    So in other words they are deciding to wait until Macs start shipping with Intel inside to make an ultimate decision.

  6. Simple…. the halo effect works by exposing more people to the Apple user experience and getting them into an Apple store for a hands on experience.

    The iPod and iTunes have enabled Apple to promote the Mac in ways that were impossible before.

    With increasing numbers of Windows users enjoying their iTunes/iPod – it’s only natural that they’d be more likely to consider (and buy) a Mac. Why isn’t this obvious to everyone?

  7. The way I see it, the Halo effect is where potential customers get to experience Apple products for the first time. Many of these customers may have little or no experience with Macs or the Mac OS. Having a good experience with the iPod may therefore induce them to look into the Mac platform for the following reasons:

    1. Virus / Security issues on Wintel
    2. Ease of use
    3. Software such as iLife etc.

    The point is that the iPod has spread the name of Apple to people who typically have never bought or considered one of their products before. Other factors such as the above will obviously be important in presuading customers to buy a Mac for the first time.

    Therefore saying that the Halo effect doesn’t exist is not correct. It is one means that are encouraging people to look into buying a Mac instead of a PC.

  8. But just you wait until tomorrow, you pusillanimous Mac zealots!

    ‘At’s right! Uh-huh.

    I’m gonna be ALL OVER that quarterly report, Homes!

    You KNOW it!!!

    Peace out.

    (Except to Mac users.)

  9. Enderle: I am seeing more Paris Hilton effect instead, Paris Rocks!!!! My Underle Group consists of me, myself, I and my wank. My wank has the highest IQ among us and it is the driving force of our think-tank: the Underle Group in the Bay Area.

  10. I have tried to convert a friend recently who likes the i-Pods and who is a realtor but apparently the IT guy of his real state firm tells him that FMLS and Top Producers web apps only work with MS Internet Explorer for Windows and don’t work well in Virtual PC. Does anyone know if this is true or if there are alternative services that he can use. Any realtors out there?

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