Analyst: 20 million Windows users to join iPod nation annually; ‘iPod halo’ bodes well for Mac sales

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


  1. As a lifelong Apple only power user, I recently installed Vista Ultimate and now even XP Professional running in VMFusion as to no longer be a bias smug Machead.

    GOD HELP ME!!!

    It was the worse $700 I ever spent in my life!!

    Vista is a world of improvement over XP, that’s for sure. It’s no Mac OS X, not even close!!

    XP is just plain horrible.

    Naturally I’m keeping the two “alien” operating systems from contacting the internet as little as possible.

    What is nice now is that cruising the software section at the local stores, which unfortunatly is mostly Windows based, isn’t such a bad thing for this die hard Mac user.

    Now I can run ALL THEIR CRAP software if I want too.

    This doesn’t sound too good for the future of OS X software though.

    Is VM and Bootcamp just a trojan horse for Windows on the Mac platform? Tough call.

    I know I can now run three OS’s at once, with three iTunes visuals at once without a hiccup.

    Ultimate Geek Machine. Makes PC users cringe.

    PS: Dear Apple, forgive me for placing the dreaded Windows on my precious Mac. But I’ve matured beyond a one OS person to being a multiple OS person.

  2. @Raving MacHead:

    You are so spot-on there. It’s amazing to me the low level of quality Windows users have to put up with in their software. Some of the “professional” stuff (bought in boxes in stores) is bad enough, but the massive loads of downloadable non-professional junk is overwhelming. And all of that poorly written junk plugging itself into the Windows registry… yikes! Causes a messed up system in no time. Having been a Windows-only user from 3.1 through 2004, I know.

    Back on topic: The above is a major reason why people are switching. The iPod experiences causes people to notice Macs, they’re already agitated by Windows, and they suddenly see the Mac as a good option.

  3. I personally think this round of iPod updates is the most compelling by far. I’ve been on the Mac since 1984. And this is the first time I’m going to buy an iPod. The storage is there, the price is right, the design is better than ever, and with voice recording and landscape switchable screen, Genius feature to play with, etc, I’M IN!

    There’s got to be plenty of first time buyers out there like me coming to the iPod as well.

  4. iPods gave Windows users the reason to “consider” getting a Mac. The switch to Intel (and Windows Vista) gave them the “excuse” for getting a Mac. The commercials were just the nagging reminders to do it.

  5. I still did not have a chance to send flowers to the guy who broke into my office and stole my HP-laptop at the time….Really, thought about buying a powerbook but kept delaying it. Until that fateful morning getting into the office and looking at my empty desk….precious moment, might be the one time in my life I was really happy to get hindsight that is…Guess that person did deserve punishment though and he rightfully got it…hehee

    Chris, same as you here, I mean since 2004, still on my first powerbook. Has been around the world a couple of times in my backpack since.
    The battery-counter tells me 58 months and running. Love this machine.
    Running a mixed windows/mac office, but keep cursing on those boxes when trying to do something simple, like putting them on the network.

  6. My new iPod touch (32 Gb) arrived today from the Apple Store.

    It’s a truely amazing device!
    A beautiful, light and slender hand-held computer – a multi-media wonder.
    I’m delighted!
    I think Apple will sell millions of these and prove the sober forecasts for iPod sales wrong.

  7. Wolf a respected online source knows what there talking about. Just proves how WRONG Wu and Enderle are every time! These two always seem to be in the negative against everyone else in the world who are always in the positive about Apple’s products. I’m amazed that anyone would count there views as anything but sheer hatred towards Apple. They two are Windows bigots who can’t get over the fact that Microsoft is falling from there halo of greatness that they thought they had. We as Mac users always knew better.
    So they always try and twist the facts, even when they are so blatantly WRONG!!!

  8. Does Paris Hilton have a touchwheel? What does she do when you shake her? Actually, I have no interest in the woman at all. She is the archetype of a rich, spoiled kid who is essentially a parasite on society.

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