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
TheStreet.com 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

26 Comments

  1. I know 4 ipod owners that have pcs. None has ever considered switching to a Mac. there is no halo effect – this is a myth started by the Steve the Great.

    Most macs being bought today are by those mac owners upgrading. PC owners buy macs for the virus reasons, not the ipod reasons. Very, very few PC owners are buying macs. The cost difference is huge and growing.
    Please don´t waste all our time by flaming with the osx is better diatribe. few care, except osx owners.

  2. Tony… I also know several PC/iPod owners and only one is ‘considering’ switching to (or adding) a mac. But even if only 5% (and the figure often quoted is 10%) do switch that is a huge HUGE boost to the mac user base. 35 million iPods by years end!

    Maybe the simple fact that Apple as a company is financially sound (thanks to the iPod) is as important as the ‘user experience’ of the iPod.

    I think, for whatever reason, the halo effect is real.

    MW truth – ain’t it so, ain’t it so!

  3. I’ve been a Mac convert since May of 2004 and do you know what sent me running to my beloved PowerMac G5 dual 1.8? It was Final Cut Pro!! I did a little research and found out that anybody worth their salt when it came to video editing used Apple products. The fact that they were virus proof was only icing on the top!

  4. A basic principle of advertising is that increased exposure and mind share usually equates to increased sales. Add to that the fact that most people love their iPods and have had really great experiences with them and a lot of them end up going into Apple Stores crammed with other cool Apple products to buy their iPods and accessories and there really is no debate. Of course the halo effect is real. The only question that remains is one of degree.

  5. Thanks Neil

    I tested the FMLS web site and yes it has problems with Safari. Some functionality links don’t show up which make the site unusable. This is the number 1 real state listings site in Atlanta. Shame. It may work under Virtual PC but this site gets heavy heavy use for a realtor. If you spend 90% of your time on it then my friend may as well get a Windows PC.

  6. The fact remains that in marketing you must create awareness as well as a call to action (i.e. purchase).

    The iPod has certainly increased awareness of Apple, and I believe increased Apple sales to people that previously would not have considered Apple products.

    Including myself, I know 6 people that have purchased (or will be soon purchasing) an Apple OS X laptop and/or desktop product AFTER purchasing the iPod as their first Apple product (EVER)!

    I know for sure that four of us NEVER even considered Apple as a Personal Computing choice prior to our experience with iPod (i.e. we now discuss how we have “seen the light” as a result of “discovering” Apple)

    After getting our iPods we started looking into Apple related websites (as well Apple’s own) for info about our iPods, and of course discovered all the information about OS X, and the Apple Mac hardware.

    Yes viruses and malware etc were factors in our decisions to purchase Apple, but without the iPod, we would have just been coughing up for another 1 year subscription to our Firewall, Adware and Virus protection software, totally unaware of the existance of a real, and even better option.

    I am not going to suggest that our experience is typical of ALL iPod owners, however I also think that statements such as “I know ‘x’ number of iPod owners that aren’t going to buy a Mac” are flawed in conclduing that the iPod halo effect does not exist.

    The fact remains, the iPod halo effect is only described as the INTRODUCTION of Apple and it’s hardware/software to people previously unaware of it, through their experience with the iPod. The premise being that SOME of these people, now that they are aware of Apple, will consider, and better still even purchase Apple products.

    For at least 4 people I know, and I’d be willing to bet the other 2 people can be counted in as well, our “Apple hardware purchases are the result of our experiences with the iPod” – I believe that the “shorthand” for that is the “iPod halo effect”? ” width=”19″ height=”19″ alt=”tongue laugh” style=”border:0;” />

    I offer this as SOME evidence that as a result of a connection with an iPod, there was a connection made to Apple, and then onto their hardware/software.

    And in this case, one, ten or even 1000 negatives do NOT disprove the existence of the iPod halo effect, however only a few positives DO prove that it DOES exist, as it shows that as a result of the iPod, SOME consumers have been exposed to and then chosen to purchase Apple products when they previously wouldn’t have, which is the ENTIRE concept behind the iPod halo effect.

    my 2 cents

    Luke ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  7. JEG, did you test the site under Internet Explorer or Firefox on the Mac? A lot of times if I run across a site that Safari has trouble with I will fire up one of those and it works fine.

  8. M. T. MacPhee–

    Why can’t you understand that the halo effect does not imply that everyone who owns or uses an iPod will buy a Mac. It simply says that some will.

    You have had some of those very people tell you here that they bought a Mac fully, or partially, due to their experiences with iPod. Or at least, their experiences with iPod led to their consideration.

    What’s so difficult about that?

    MW: Built. We are now seeing the beginning to what may one day be referred to as “The house that iPod built.”

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