Originally published February 17 2005
iPod, iPod Shuffle, and Mac Mini may inject new blood into Apple's ailing computer business
by Mike Adams, the Health Ranger, NaturalNews Editor
Analysts believe that the strong sales of the iPod, iPod Shuffle, and Mac Mini may have positive effects on Apple Computer beyond their contribution to the company's strong profit picture. Apple earned $295 million in profit on a record $3.5 billion in sales for the fourth quarter of 2004. It is hoped that the success of the iPod, Shuffle and Mini may create a "halo effect" with consumers, making Apple's PC line more attractive.
Sales of iPod digital music players and iMac computers propelled Apple to a record $3.5 billion in fourth-quarter sales.
Add the new iPod Shuffle and the Mac mini, and Apple looks to be poised for more growth this year.
The iPod appears to be giving Apple's declining Macintosh computer business a new lease on life.
The presumption is that once consumers get a taste of the enabling Apple software that makes the iPod so easy to use, they will be more likely to take a second look at the company's revamped computer line, including a new Mac Mini that is being sold -- without monitor, keyboard and mouse -- for just $499.
"The iPod is causing some people to take another look at the Mac platform again, if they haven't done so for a few years -- but Apple still has to prove itself," says Gartner research director Mike McGuire.
"Although consumers will still have to find value in Apple's $500 Mac Mini, this is the real door opener," he told NewsFactor.
In the fourth quarter of last year, "Apple did manage to grow its PC market share by one-tenth of 1 percent, both worldwide and in the USA," said IDC vice president of client computing Roger Kay.
As Dell learned the hard way, when it tried to launch a competing mp3 player, there is more to Apple's iPod success story than the mere commoditization of a technology.
It launched a product that not only sported "an attractive form factor" but also was supported by "an intensive marketing campaign that promised to place a thousand songs in the owner's pocket," she told NewsFactor.
"What Apple actually did with the iPod is to transform it into a 'cultural icon' by injecting a little more into it than being just another commodity music player," adds McGuire.
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