halo effect

Merrill Lynch today said that Apple beat its "best-case scenario" estimates for second quarter earnings, and showed "quantitative proof of the halo effect." Mac revenue increased by 29 percent year over year, "clearly gaining share in a PC market showing little dollar growth." The iPod is bringing new to the platform, "benefiting not only Mac sales but also peripherals and software." Investors "need to stand back and consider whether Apple has created a pattern of introducing creative products to a consumer hungry for easy-to-use technology." Apple could be "building a sustainable consumer franchise ... iPod and now Mac success has been underestimated by the market." Yesterday, when asked about Apple's "consumer franchise," Apple CFO said, "I don't think Apple could ever be out of ideas."

by MacNN Staff