Needham & Co. analyst, Charles Wolf, in a note to clients yesterday wrote of Apple’s “Let’s Rock” event announcements, “‘We would rate the event a material positive because it did address the issue of Steve Jobs health and it did deliver a crucial software update for the iPhone,” Distorted-Loop reports.
Wolf wrote, “‘It’s important to place the iPod in perspective. Through the iPod halo effect, it continues to convert Windows users to the Mac platform. But the product has reached the mature phase of its life cycle with annual sales of 50 million units, slowing to a high single/low double-digit growth rate,'” Distorted-Loop reports.
Wolf wrote, “‘The iPod continues to gain share in markets abroad, most notably in Europe, where iPod sales dramatically lagged those in the US, and in China and other countries in the Asia Pacific region. We estimate that 20 million or more Windows users will join the iPod nation annually over the next few years and potentially fall under the sway of the iPod halo effect, which is great for Mac sales,'” Distorted-Loop reports.
MacDailyNews Note: Wolf reiterated Needham’s “Strong Buy” rating and maintained the firm’s $240 price target on Apple (AAPL).
Full article here.
Our massively-stuffed iCal reports: “Rob Enderle, head of California-based The Enderle Group, says the so-called ‘halo effect’ around the iPod is really just a myth. ‘From what I’m seeing, the iPod simply drives people into the stores, and the foot traffic helps move product. The iPod benefits the entire Apple product line, but Apple could have done the same thing by having Paris Hilton, or some other celebrity, visit the Apple stores.'” – Forbes, May 2, 2005