iPod Halo, meet Intel Pause

“Apple Computer reported net earnings jumped 41 percent in the latest quarter Wednesday, topping forecasts on Wall Street, but it issued a lukewarm forecast for the current quarter thanks to its ongoing transition to Intel chips for its computers,” Amanda Cantrell reports for CNNMoney. “Nevertheless, investors liked what they saw, and Apple stock jumped about 4 percent in after-hours trading.”

“Apple, based in Cupertino, Calif., shipped 1.1 million Macs in the quarter, just below Wall Street analysts’ expectations of about 1.2 million, owing to a slowdown in demand as customers put off buying older models in favor of waiting for new Mac models containing Intel chips. The company said its entire Mac line will make the switch to Intel chips by the end of the year,” Cantrell reports. “And Apple said it expects $4.2 billion to $4.4 billion in revenue for the current quarter, below analysts’ expectations of $4.72 billion, and earnings per share of 39 cents to 43 cents, after a 4-cent charge for stock-based compensation. Analysts had been forecasting profit of 47 cents a share for the current quarter.”

“This is the first quarter that Apple shipped Macs with Intel chips, six months ahead of schedule. The Intel-based iMac desktop debuted in January, the MacBook Pro laptop started shipping on Feb. 14 and the Intel-based Mac mini debuted on March 1. On a conference call, Apple CFO Peter Oppenheimer acknowledged that some customers delayed buying Macs that haven’t been switched to Intel chips, and that others may be waiting until some software created specifically for Intel-based Macs by other companies, such as Adobe, became available,” Cantrell reports. ” Oppenheimer added that the company’s retail stores focused on the Intel transition, adding that sales reps in the company’s retail stores were “not discouraged” from telling customers to wait for Intel-based Macs to come out rather than buying older models, which added to the slowdown in demand. ‘As we anticipated, this pause was more evident during the March quarter,’ he said. Analysts expect the move to eventually boost sales, but they think it will continue to cause disruptions in sales until the entire Mac line is transitioned. Earlier this month, Apple released a beta version of software that will let users of Intel-based Macs run both the OS X operating system as well as Windows XP, a move that many analysts think could spark gains in Apple’s market share, currently estimated to be about 2.3 percent world wide.”

Full article here.

MacDailyNews Take: iPod Halo, meet Intel Pause. He won’t be around long, so be nice to him. When he’s gone, it’ll make your work a whole lot easier; especially since we brought in that new Boot Camp guy to run your operations from this point forward.

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Related articles:
Apple figures suggest that 2006 may be very big year, thanks to Windows users switching to Mac– April 20, 2006
Analysts see Apple Q3 06 forecast as conservative, peg revenue estimate at $4.72 billion – April 19, 2006
Apple Q2 2006 Conference Call notes – April 19, 2006
Apple reports Q2 2006 earnings: $4.36 billion revenue, $0.47 earnings per share – April 19, 2006


  1. A couple of weeks ago, Windows XP was the epitome of evil and now MDN’s take says ” iPod Halo, meet Intel Pause. He won’t be around long, so be nice to him. When he’s gone, it’ll make your work a whole lot easier; especially since we brought in that new Boot Camp guy to run your operations from this point forward.”

    Explain how running Windows makes the Mac experience better.

  2. Strange,

    It’s an analogy. iPod Halo was supposed to introduce Windows types to the Apple way and eventually get them to sample Mac OS X and then switch to Mac. Boot Camp is now going to do the job better than iPod Halo. They will work together, but Boot Camp is more important. Once Intel Pause takes off, the sky’s the limit for Apple!

    People who need to run Windows-only apps that would like to have a Mac instead of a Windows PC: accountants, architects, business people, consumers, and on and on and on…

    Running Windows on a Mac is designed to grab switchers. The more people that use Macs, the more developers there are making Mac apps.

    As MDN have said before: “Embrace and Extinguish.” That’s what Apple is doing with Windows.

  3. some people have real life jobs to make their money. Sometimes, in those jobs, there are like 2-4 Windows-only-and-forever applications we need to use.

    Honestly, book camp means nothing to me – Parallel’s virtualization software was the clincher for me – because now, i’m using my Mac on 95% of what i need outside of email – and i need Outlook because we have Outlook forms and security that i can’t live without..

    so instead of doing my work in Windows all day, i do it now in Mac OS X all day, and have Outlook running in a little window that i can pause and start up only when i give a rats ass.

    This is the reason i love my MacBook Pro – i can use a mac and mac os x all day long now.

  4. “Explain how running Windows makes the Mac experience better.”

    This is easy. The Boot Camp thing isn’t for YOU. YOU don’t use Windows. I swear the number of Mac fanboys who I have to explain this to nauseates me.

    First off the Intel switch is all about software compatibility, not to get back at IBM. Secondly, the number one objection users have to switching to Mac is software compatibility. Most users don’t want to ahve to buy all new software at the same time they buy their first mac, nor can they afford to be without that one app they can’t get on a Mac, that is Windows only.

    Along comes boot camp. Now they don’t have to buy all their software over right out of the gate. They can now run AutoCad or whatever they need to during the day and then run OSX apps at home at night. They can take their time buying Mac versions as time goes by. This ELIMINATES OBJECTIONS to buying a Mac. They ahve their safety net. They have what they are comfortable with so they can feel good about making the switch.

    This situation is almost no different than when Apple switched from OS9 to OSX. They invented Classic. Think of bootcamp as Classic for Windows users. The idea here isn’t to provide Windows to users as a 100% of the time forever solution, it’s to get people to ween themselves off Windows.

    How does this make the Mac experience better/ Well it brings more marketshare to Apple, it gets more developers to make Mac products. The platform gets stronger and the customers benefit.

    What about that don’t you understand?

  5. Strange:

    Is Windows evil? Of course. But for some, it’s a necessary evil. If you’re tied to certain Windows-only software packages, but would like to try the Mac experience, now you have no more excuses. Explain to me how that’s bad for anybody.

    MW: “anyone” .. Anyone that says that Windows “taints” the Mac is a dramatic moron.

  6. 4% increase of year over year sales is just not enough

    you can say there is a ‘pause’ due to the intel switch, but equally you can argue that there should have been a huge pent-up demand, and the halo effect is damn slow kicking in, personaly I’m not holding my breath for any share increase anytime soon.

    Hope I’m wrong because the Mac rocks, and XP sucks big time.

    Any potential switchers might just wait and see what Vista brings.

  7. Don’t be fooled by Boot Camp. The real secret is in running multiple OS at the same time. Switch back and forth between OS X and XP/Vista without any delays or reboot. Start playing a song in iTunes in OS X and finish the song in Vista without missing a beat. Now that’s the holy grail of PC’s.

  8. “Slow” sales could be attributed to the G5 iMac and the intel Mac being so close together. It’s hard to ask someone to buy two newer PCs in a span of three months. Especially, since the intel was 6 months early. They should have delayed the intel Mac or not even release the G5 Mac. The Mac Mini should have been first. The iMac last.

  9. Think of bootcamp as Classic for Windows users.

    Well put!!! That is the best Mac-centric explanation of BootCamp I have seen yet!

    It won’t make sense when explaining BootCamp to a Windows user, but it will help us focus on the whole zeitgeist of it.

  10. Boot Camp could keep AutoCad and other apps form being ported to the Mac platform. I loathe Windows and only use it when paid to. Why anyone with any choice would want to run crippled Windoze kludgeware is beyond me. Buy a cheap PC to run your stuff on remote desktop.

    Last night I set up VPC 7 on my niece’s iBook (she needs it for College). The XP package was pre-SP2. After installing XP and service pack 2 I ran Windows Update. 43 Critical Updates later the thing was current. That does not count optional installs– just security patches. Even with all of that you still need AV software and all of the other stuff.

    If you want to kludge up your Mac with that kind of sh*t– drive on. I will wait for the v1.0 version of DarWine which is a superior solution. No Windows and no Windows APIs.

    The real harm of Dual Booting is to original Mac development. If tons of Mac users run PC versions of software on XP via Boot Camp, what will happen to many small Mac developers? The Mac Developer Community is not really very big. The fact that the M$ Mac BU is the largest outside of Apple ought to tell you something. Factor Boot Camp and Piracy together and you might not want to take the risk of developing for the Mac.


  11. Intel Pause? You Bet!
    In a word: PHOTOSHOP!

    Until there’s a Universal version of Photoshop available, the Intel pause will be in FULL effect!

    Also, any long time Mac users know better than to buy ANY Rev.A Mac.
    The shift to Intel processors and the dramatic change in motherboard architecture only highlight the hesitation. PLUS, on top of the hardware shift, we’ve also got to wait for Universal Binary applications to become available.

    When we see stories, yesterday for instance, that the MacBook Pro’s graphics card is being underclocked by over 40% because of power and heat issues… this SURELY highlights Rev. A Syndrome. Apple and ATI WILL get it right at some point, I’m sure. Sorry, but I’m not paying to beta test. That’s like paying to wear company logos on your clothing. PAY ME!

    No matter how much faster the Intel macs may be, unless we’re going to reap the full speed benefit and fixes to buggy new hardware, why NOT wait for all the parts to fall into place?

    MDN Magic Word: I know I’m not ALONE in this!

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