Wednesday, October 12, 2005

New Video iPod, stronger iPod Halo Effect, More Switchers

The new video capable iPod is yet another product that should increase Apple's popularity in the market. The iPod has generated what is known as the "iPod Halo Effect", the idea that the popularity and strong sales of iPods to Windows PC owners translated into increased Macintosh computer sales. There has been anecdotal evidence to suggest that the "iPod Halo Effect" does indeed exist. In fact, Apple released metrics on October 11, 2005 that showed the company exceeding market expectations for Macintosh sales (story).

The new iPod should take the "iPod Halo Effect" to the next level. The new features in the iPod along with iTunes 6 should provide additional momentum to halo effect.

Apple will likely experience a new wave of iPod sales during the upcoming holiday shopping season and this will provide addition fuel to drive the "iPod Halo Effect" engine. This in turn will result in more consumers purchasing thier first Macs in the not too distant future. Apple will see increased market share gains as more "Switchers" come to the Mac and OS X platform.

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