The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Piper Jaffray: The iPod Halo Effect is Real and Growing

Piper Jaffray: The iPod Halo Effect is Real and Growing

by , 11:15 AM EST, November 24th, 2004

Much has been said of the iPod's "halo effect" -- the notion that strong sales of iPods will spill over into sales of Macs. Analysts have routinely cited the factor in bolstering their outlook of Apple, but to date little proof exists that the halo effect is in any sort of effect (most recently, Apple's global market share for sales of new systems fell to a paltry 1.8 percent).

While sales of Macs have been holding generally steady quarter after quarter, hovering around 800,000 units, a survey conducted by Piper Jaffray, the brokerage firm that earlier this week raised its target on Apple to $100, found that 6 percent of iPod users have in fact switched from Windows to Mac, and that another 7 percent are planning to make the switch.

C|NET notes that Gene Munster, a senior research analyst at Piper Jaffray, believes that the iPod halo effect is only beginning. "We're in the very early innings of a multiyear trend," he said.

The Mac Observer Spin:

A lot of controversy surrounds the halo effect and whether it really exists. Steady (and not growing) sales of Macs over the last couple years suggests that if there has been a halo effect, that without it sales of Macs would have actually declined. If we assume that half of iPods are sold to Windows users (the real number is likely more), then 3 million iPods have ended up in the hands of Windows users, which using Piper's 6 percent figure translates into 180,000 switchers. Unknown from Piper's survey is whether the 6 percent of iPod owners who had switched made the switch before or after getting an iPod, as the former would discount the halo effect. We'll have to see how holiday sales of Macs fare this year, which will perhaps be the most telling sign yet of a halo effect--especially since Apple recently refreshed its consumer iMac and iBook products, making them more appealing than ever.

Recent Headlines - Updated March 5th

Wed,8:50 PM
Decades-Old Legacy Encryption Found in iOS, OS X, Android - Apple Says Fix Is Coming
7:30 PM
ACM 296: Apple’s Spending Restraint, Disconnected Analysts, and Google’s Cell Service
7:23 PM
Pay What You Want: Front-End Developer Bundle
4:40 PM
Intuit Hoses Quicken (Mac) Users…Again
4:40 PM
Q Card Case for iPhone 6 Plus Uses Credit Card Slot as Kickstand
3:56 PM
Apple Will Reportedly Announce MacBook Air with Retina Display on March 9th
3:30 PM
Why Some Observers Think Apple Watch Won’t Succeed
11:38 AM
TMO Daily Observations 2015-03-04: Apple’s Pro-worker Stance in Silicon Valley
10:44 AM
Apple’s Security Contractors are about to Become Employees
9:36 AM
Apple Working on Settlement with A123 after Hiring Battery Employees
8:50 AM
OS X Photos Beta: Adding to Existing Albums
Tue,9:30 PM
David Sparks Debuts ‘Workflow Video Field Guide’ for iOS Automation
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!