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An industry analyst credits the iPhone's continued hot sales for buoying Apple's computer business at a time when other PC makers are barely holding their own in the tough economy....
12-01-2009, 12:53 PM #1
The "Halo Effect:" iPhone Bolsters Mac Sales
An industry analyst credits the iPhone's continued hot sales for buoying Apple's computer business at a time when other PC makers are barely holding their own in the tough economy. Calling it the "iPhone Halo Effect," Needham & Co. analyst Charlie Wolf says the popularity of the iPhone encourages consumers to switch to the Mac. They are doing so in droves: Mac sales worldwide grew 16.4% as compared to the same period last year, while the rest of the PC market grew by only 2.3%.
Wolf writes the subscription-only "Wolf Bytes" investor note, which was excerpted by AppleInsider. He noted that Apple's growth came in spite of the fact that the computer manufacturer has refused to make low-cost netbooks, as many analysts have been calling on them to do. Instead, Apple has continued to focus on the "premium" market: distinctive computers that consumers have shown willing to pay extra for.
We have consistently argued that Mac price cuts were a misguided strategy. Such cuts would not have stimulated much demand because the price elasticity of demand for the Mac -- the one differentiated product in a sea of commodities -- was simply too low. They would end up decimating Apple's gross margin with little to show for it.
According to Wolf, a major factor in the ongoing rise in Apple sales is a spin-off to the popularity of the iPhone, which has a "halo effect" that makes users more likely to buy or switch to a Mac. Wolf noted this when the iPod took off, but says the iPhone exerts this effect in an even more powerful way.
We believe that the halo effect emanating from the iPhone should be even stronger than that surrounding the iPod. After all, the iPod is a relatively simple device while the iPhone is arguably a mini-computer wrapped in a phone's form factor.
Apple continues to be strong for home and school use, while weaker in business. Sales to home users grew 28.8 percent worldwide in September, as compared to just 18.1 percent for all other manufacturers. Education sales grew 15.6 percent, while other PC makers 2.5 percent in schools. Mac sales fell 12.4 percent in the business market, however, and sales into government institutions plummeted 76.8 percent.
Apple is expected to sell another 2.9 million computers this quarter.
image via IDC
Last edited by Paul Daniel Ash; 12-01-2009 at 12:56 PM.
12-01-2009, 12:57 PM #2
Yup that is what I did..... bought the iPhone thought it was cool and then my Macbook and then my IMac...... the iPhone sucked me right in! LOL And glad that it did!
"Always remember your special and unique!"
12-01-2009, 01:18 PM #3
12-01-2009, 01:53 PM #4
^^ yup same as melech got my macpro first then went to iphone.killall Terminal
12-01-2009, 02:03 PM #5
I think that I would definitely buy a netbook if they had one available since all I want to do with it is web surfing and whatnot while on-the-go.
I'll happily tote around a Sony Vaio netbook instead. /shrug
Apple has sadly been unable to sink their teeth into me. I have a core i7 desktop that I built for 1/2 the cost of a Mac, and I definitely adore my Lian Li case as well.
C'est le vie. Hopefully they will uber secretive and sell a netbook in the next two weeks while I'm ironing out which one I really want!
12-01-2009, 02:09 PM #6
I am part of this as well. Lifetime PC user (except as a kid when they had the Apple 2C in schools), and I got an iPhone.
Loved the phone and went and got a Mac for my home computer. Still need my PC laptop for work, but my home is Mac driven now for sure.
Macbook is the next one for me.
12-01-2009, 02:20 PM #7
Wife got an Iphone, I loved it (once it was j/b, snowed, rained), and I had to get one...
So I thought why not try a mac?
Never looked back, no regrets!!!!
12-01-2009, 02:30 PM #8
I think this article is talking about me! Yes, i got the iPhone and then liked what i saw. Then, eventually i became curious of the MacBook Pro and ended up purchasing one. I haven't really "switched" to the Mac as the article says..i just added it to my collection of PCs and utilize both.
The Mac hopefully, will be my last laptop. As long as i can bootcamp it with Windows (love bootcamp!), i'm set! Though i have to admit, the touchpad on the Windows OS sucks on the Mac. I wish i could use the multi finger functions like on the OS X.
The one thing that bothers me are the haters. Why can't we all be open minded to what we want without being criticized?
12-01-2009, 03:23 PM #9
iPhone 3G first, Macbook Second :- p
12-01-2009, 03:45 PM #10
12-01-2009, 03:58 PM #11
Doing a bit of research here for my upcoming article in the San Jose Business Journal. Seeing how this news shows that macs are growing in popularity and that this is a mostly mac community, this might be a great way to get some information. So my question to everyone is: What do you mainly use your mac for? Thanks in advanced.
12-01-2009, 04:07 PM #12
^ That's cuz it's not cool to go to Starbucks with an iPhone and an Acer laptop... they just don't match! GAWD!
12-01-2009, 04:08 PM #13
I did pretty much the exact opposite of that. I bought an iPhone 3G, saw that apple was being an a$$h01e with their app store approval process and their turning against Google, and I decided not to reward them by buying another one of their products (plus their 17" laptop starts at an outrageous $2500....).
12-01-2009, 04:23 PM #14
Everything I used my PC for before, but now a lot faster. Making movies and slide shows, writing reports for school and doing Java code for my programming courses, and of course the internet and all it's bounty. It does everything a PC does but better. There are those that complain about it not being able to play the PC games... that's not me, if I want to play games I get a console (not xBox cause I hate microsoft now) like the PS3 dedicated to playing games.
I got an iPod and thought if they can make an mp3 player this easy why not a computer, still took another year and getting sick and tired of my laptop having problems before I got an iMac. The laptop became used for logging into work only. Then I got a Macbook and run VMware fusion to use vista to log into work. No more PC's for me!
Last edited by barno909; 12-01-2009 at 04:25 PM.
12-01-2009, 04:54 PM #15
12-01-2009, 05:05 PM #16
I know that currently there is no Mac that can touch my PC in regards to costerformance.
Apple 27" iMac 2.8GHz Quad-Core Intel Core i7 Desktop Computer - Z0GF0003W - $2399
The price upmark on these is absurd for what you are getting. I've recently built an i7 machine (as stated earlier) that will give me much better bang for my buck.
If Apple allowed a more open design for hardware, then yeah, I might consider dual booting my rig to see what the OS is all about, but I'm not going to drop damn near 3 grand on a computer after all is said and done just to try out an OS.
I think the closest that I could do is buying the cheapest notebook that they have and dual boot Win7 and OSX. That or find out if there are any real issues with loading OSX on a netbook, as I've read it's somewhat easy. That might possibly sway my decision on the netbook that Apple just doesn't want to make.
Again, it comes back down to a reasonably priced device to try to lure me in. Without that, Apple will never see a dime from me aside maybe a future iphone purchase.
12-01-2009, 05:07 PM #17
@snap1500 I like iSquint for Mac. I find Handbrake too confusing. Any Video Converter is good for PC or Mac. As for speed. I've never paid attention cause either one is pretty fast. Not immediate, but not long.
I totally fit this profile. I bought my first Mac ever when I got my iPhone. I'll probably buy another for the house, but I'm still a PC guy. Anyone know the easiest way to convert mkv to mp4 or avi?I thought my carrier was bad til I got a new web host
12-01-2009, 05:35 PM #18
True. You can't have a real comparision because the hardware wont match up 100%. One way to compare them is to use the exact same hardware as much as possible, memory, harddrive, CPU, video card, Soundcard. The mother board will obviously never match, but this is one way of testing.
If you were to price the above parts for mac and PC, you will find that the price is somewhat the same for mac and PC. One reason for the higher price of macs could be because of material ued. You are paying a higher price for precision machined aluminum housing vs lower cost plastics used in PC. There's also the designer cost (there's no way a bunch of computer programmers can design such beautiful products ). And then there is the cost for the OS. It's not free you know. Apple charges a premium for having their name on the product as well. As for whether the mac motherboard is better than PC motherboards, research is still being done on this. At the moment, not much to support that mac hardwares are better. Otherwise, there wouldn't be applecare right?
Last edited by snap1500; 12-01-2009 at 05:35 PM. Reason: Automerged Doublepost
12-01-2009, 06:14 PM #19
i've been using macs for 4 years now, starting with my black macbook and now with my 15 inch suuped up unibody mbp, as soon as i heard of the iphone i was like omg i have to get it and that I did lol and i just recently added to my apple collection with a 64gig ipod touch after the hard drive in my ipod classic got frieddd..
i think apples recent popularity is simply due to WAY more exposure!! Think about it, previously Mac products were only availible in Apple stores, with the introduction of authorized retailers Apple has brought their product to millions more who didn't have Apple store near them... also Apple has beefed up its advertising in a major way
Last edited by Ximpostrxx; 12-01-2009 at 06:17 PM.
12-01-2009, 06:16 PM #20
i hate all of u mac people
haha jk, i still have vista but upgradeing to windows 7 as im getting a new computer.
mite install or dual boot snow leopard on it
Please know we are praying Kyle (poetic_folly) and Robyn Matthews for your little one.
You too blkcadi