Boot Camp may triple Mac market share

Analyst Charles Wolf of Needham Co. upgraded Apple's stock from a 'hold' to a 'buy,' issuing a price target of $90. "The trigger for our upgrade is the prospect that a significant number of Windows users will switch to a Mac once it's able to run Windows applications," Wolf wrote in a research note obtained by MacNN. A survey of Windows users in the U.S home market indicated that 8 percent would switch to the Mac platform if it could run Windows, which would nearly triple Apple's share in the home market while increasing it 75 percent worldwide. "Although a seemingly small percentage, it nonetheless dwarfs Apple's current share of the home market," Wolf said.

Bundling Boot Camp

On April 5th Apple introduced a beta version of Boot Camp, its software that enables Macs to boot into either Windows XP or Mac OS X. The company plans to bundle Boot Camp into Mac OS X 10.5 "Leopard," which is slated for shipment in early 2007.

Bolstering the "halo effect"

The survey also indicated that the Mac's ability to run Windows could boost the iPod "halo effect." More than 20 percent of Windows users who own iPods indicated they would switch, according to Wolf.

"The risk in our upgrade is one of timing," Wolf noted. "The migration to the Mac resulting from its ability to run Windows is unlikely to kick in fully before 2008. In [the] meantime, Apple's transition to Intel processors could cause customers to postpone purchases until this transition is completed in early 2007."

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