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April 14, 2005

Halo Effect? Apple Posts Strong iPod, Mac Sales

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On Wednesday, Apple Computer posted record quarterly earnings and revenues thanks to strong sales of its iPod MP3 players and Macintosh hardware. Given the rampant success of the iPod in recent months, Apple's earnings aren't that surprising. What is surprising, however, is the Mac: According to the company, Apple sold more Macs in the previous quarter than it has in any quarter since before the company launched Mac OS X back in 2001.

In the quarter ending March 31, Apple shipped 1.046 million Macintosh computers, a whopping 43 percent increase over the same quarter a year before. Most of that growth likely came from the new Mac mini model, a $500 Macintosh that competes with low-end PCs and is comprised largely of low-end laptop parts.

Some analysts and Apple fans are crediting the rise in Mac sales to the so-called "halo effect" surrounding the iPod. The idea is that customers who purchase an iPod will become as fixated on Apple products as its most ardent fans and then rush back to the Apple Store and drop thousands of dollars on a new Mac. Despite the upswing in the previous quarter, however, the halo effect is somewhat fanciful: iPods work well with PCs, but users would have to drop years of compatible hardware and software to switch to a Mac, a process that would ultimately be extremely expensive.

Regardless, one can't deny the success that Apple is currently having with both its iPod and Macs. As a long-time fan of the Mac, It's nice to see this once-beleaguered system regain its footing. With a little luck and continued healthy sales, perhaps the Mac can climb out of the market share gutter and reach a wider, more relevant, audience.

End of Article



Reader Comments
Shut up Paul, Your such an Crapple loving fanatic. There's more useful technology in a Big Mac.

Anonymous User April 14, 2005 (Article Rating: )


It's nice to see an intelligent response...

Anonymous User April 14, 2005 (Article Rating: )


Apple sold more Macs in the quarter than it has in any quarter since 2001 ... however, the halo effect is somewhat fanciful

What insight!

Anonymous User April 14, 2005 (Article Rating: )


I don't understand how you can say "...drop thousands of dollars on a new mac." right after you say most of the growth comes from the $500 mac mini. You don't make sense.

Anonymous User April 14, 2005 (Article Rating: )


To poster #1, you are a Microsh*t whore. And you are wrong about Paul, he is a Microsh*t whore too. There is more useful technology in a pile of dogsh*t than in any Microsh*t product.

Anonymous User April 14, 2005 (Article Rating: )


I think Apple's best bet for this "halo effect" is that those hip teens that are gobbling up the iPod and probably don't have a particular preference on what computer platform they use start buying Mac Minis for the "cool" factor similar to their reasons for buying cell phones based on things more like form over function.

Anonymous User April 14, 2005 (Article Rating: )


>...but users would have to drop years of compatible hardware and software to switch to a Mac, a process that would ultimately be extremely expensive.

Not necessarily true. With the Mac mini, one could enjoy the top OS (Tiger) and iLife suite of apps, and other software that comes with the computer for about $500-600.
They can still run their pc, share printers and scanners, etc. and gradually add software to Mac if/when they decide that that is the way they want to go (my guess) in the future.
MS Office for Mac, student edition- $150
iWorks (Pages; Apples word processor/layout app, and Keynote; Apples presentation [PPT] app) $79
Photoshop Elements $99
you won't need anti-virus software

Anonymous User April 14, 2005 (Article Rating: )


"users would have to drop years of compatible hardware and software to switch to a Mac, a process that would ultimately be extremely expensive."

Yeah, because unlike their experience on a PC, they likely can't pirate their software from their PC at work.

As far as hardware, I'm aware of very little hardware that one would move from PC to PC that wouldn't work on a Mac, particularly anything connecting with USB or FireWire.

Of course, they wouldn't have to drop megabucks on software firewalls, antivirus software, antispam software, etc...so maybe it's a wash in the end, eh?


Anonymous User April 14, 2005 (Article Rating: )


Mr. Thurrott, a Mac fan? I doubt it sincerely based on the slant of his "reporting". Describing the halo effect as "fanciful" seems slanted given the fact Apple just sold 43% more Macs than last year and that 2 out of 5 Mac purchasers this quarter were first time buyers. Describing the Mac Mini as being comprised of "mostly low-end laptop parts" when low-end Wintel laptops don't even come with video cards seems slanted (the Mac Mini has a ATI Radeon 9200 with 32MB dedicated DDR SDRAM). Other things you won't find on most "low end" Wintel laptops that you will find on the Mac Mini include a Firewire port, DVI support, S-video out, and the very nice software bundle including the iLife suite. Not reporting on the strengths of the Mini (compact, elegant, Windows compatibility, ability to use a PCs USB keyboard and mouse, and the other features above) when referring to it as being comprised of "low end laptop parts" seems slanted to me. Using terms like "fixated", "ardent" and less "relevant" when referring to Mac users smells of slant to me. Using a bait and switch argument of suggesting the Mini is a cheap (poor) product then claiming that the halo effect presupposes people will buy a Mac that costs thousands of dollars seems slanted. Saying that Apple is in the "market share gutter" seems slanted. Referring to a switch from Wintel to a Mac as "ultimately be extremely expensive" seems like a FUD marketing campaign direct from Microsoft. If he's were a tech or reporter who knew this field he should know that for most users the "years of compatible hardware and software" that he's referring to would be mostly covered by the fact the Mini can use most of the USB or Firewire hardware that they have, and that the Mini comes bundled with a suite of software that will fill many if not all needs. Most typical Wintel users I know don't have thousands of dollars invested in software.

Anonymous User April 14, 2005 (Article Rating: )


No need to spend "thousands of dollars", for non professionals, who are the Mac-Mini's target market, the free iLife and $79 iWork is more than enough. Unless theyre pirating, most mac-mini buyers cant justify spending $490 on an M$ office pro suite... who wants a bloatware dog like Word2004 anyway?

Anonymous User April 14, 2005 (Article Rating: )


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