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ZDNet: Halo effect is "nonsense"

updated 07:55 pm EDT, Wed October 24, 2007

iPod halo is "nonsense"

Calling the "halo effect" -- a term applied to the peripheral effects of the success of the iPod, iPhone, etc. -- hyperbole, ZDNet says there are a number of other reasons for Apple's rapidly growing Mac market share. These include Intel Macs, which make virtualization software for running Windows a possibility -- a strong draw for switchers; Support, for which Apple has been ranked far ahead of other PC manufacturers in various surveys; Microsoft's mistakes with Vista (underestimating the pull of the installed base of Windows XP); the fact that Mac users support the platform and evangelize it to others, and more. "The turnaround in consumer attitudes towards the Mac didn't happen with the release of the iPod. Rather, it is the culmination of a brand rebuilding strategy that began 10 years ago."


Analysts and some other pundits disagree, opining that the increase in Mac sales is indeed due to the much-talked-about halo effect. "It is primarily [the] 'halo effect' driving the jump in Mac sales," says Van Baker, research vice president of Gartner Consulting. "Consumers come in [to the Apple stores] to buy an iPod and stop to check out the MacBook Pros while they are there."

Earlier this week, Apple announced that it earned revenue of $6.22 billion with the help of more than 2.16 million Mac sales -- which broke the company's record for the most Mac sales in a September quarter by 400,000 units. Overall, Apple generated more than $24 billion in revenue and $3.5 billion in net income during the fiscal year 2007. Apple CFO Peter Oppenheimer cited "record results" in his introductory comments, adding that this was the "highest September quarter revenue and earnings in Apple's history."




by MacNN Staff

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Comments

  1. climacs

    Joined: Dec 1969

    0

    it's the iPod stupid

    my my, touchy touchy... they can't deny that Apple is gaining market share finally, but they just can't bring themselves to admit that iPod was the catalyst!

    Apple users have been evangelizing for many years and mostly, PC users either found us annoying or just ignored us. It was the success of the iPod which opened up people's minds to considering the big switch.

    I wouldn't attribute it solely to the iPod of course... there's also Microsoft's huge missteps with Vista... there's Apple Stores (but what got a lot of PC people in there in the first place? The iPod!)... the switch to the Intel CPU...

    Finally, I'm really not sure how many people switched to Mac because of the ability to run Windows apps... I mean, that SHOULD be a huge reason but as a practical matter, how many former PC users are running Parallels/Boot Camp?

    Denial ain't just a river in Egypt...

  1. climacs

    Joined: Dec 1969

    0

    also

    the iPod enabled the Apple brand to transcend its long-time 'geek cool' and become a high-status brand among 'normal' folks, like Dolce+Gabbana or BMW (yes, really!).

  1. unity@mac.com

    Joined: Dec 1969

    0

    Agree with above...

    I know of NO ONE (although they are out there) that have switched to run windows software. Bootcamp is more of a "pro" feature really.

    I think it just comes down to consumer education. Heck, in the past five years my mom has even come a long way. People are learning of the alternative out there - or the fact that there is even one! Some people still think Macs run windows natively!

    But people are learning and the iPod has kept the Apple name fresh in peoples minds. When people keep hearing good things again and again about a company they eventually inquire.

  1. climacs

    Joined: Dec 1969

    0

    pc fanboys still clueless

    hoo boy if you want a good laugh or three, read the comments at the ZDNet blog. PC fanboys still don't get it. Here's a choice one:

    "it doesn't take more than 7 days to break the update by hackers. the reason why Apple has not had many issues with viruses/etc in the past is because it wasn't a popular enough platform to generate any kind of buzz. but now that it's emerging and getting bigger, ppl will see how weak Apple's codes are when compared to Microsoft's."

    how many years have we been hearing THAT one? And now that Apple has doubled (or more) its market share... still no outbreak of Macs attacked by viruses.

    Of course, it's probably just a result of collusion within The Vast Left-Wing Hacker Conspiracy, agreeing not to write any viruses for the Mac platform...

  1. climacs

    Joined: Dec 1969

    0

    hilarious

    I don't know how anyone could write that above quote re: Apple's 'weak' codes with a straight face.

  1. BelugaShark

    Joined: Dec 1969

    0

    Apple Stores

    One of the strongest catalysts in my opinion are the Apple Stores. People were finally able to use a Mac, get service, ask questions, see the support at the genius bar, and of corse experience the free training. Compare that with CompUSA, BestBuy, and the CircuitCity days.

    I clearly remember salesmen at CompUSA steering customers away from the Mac section, the sales staff knew nothing about Macs.

  1. robttwo

    Joined: Dec 1969

    0

    uhhhh

    Not to mention, when people use MAC OSX, they like it better.

    Of course, these are "analysts" speaking - why would they be expected to know that?

    Doofuses.

  1. bobolicious

    Joined: Dec 1969

    0

    @ 97% market share...

    ...the most obvious possibility is down...

    The need for hardware upgrades for Vista made comparison shopping a no brainer... Ooops!

  1. darksol360

    Joined: Dec 1969

    0

    I beg to differ!

    I just posted a blog in response to John Gruber blog on Mac sales last quarter. It is my word for word, honest rendition of this switcher's halo tale.

    The halo effect is alive and well (look at the increased NPD numbers over 360's sold last month, coincidentally the same month as.. Halo 3).

    http://macnewbtube.wordpress.com/2007/10/23/increase-in-mac-sales-ipod-mac-vs-pc-ad-campaign/

    This is not a troll. I saw this MacNN article through RSS, and had to get my post out there, considering the relevance and the hope that ZD might take a peek and feel foolish.

  1. TheSnarkmeister

    Joined: Dec 1969

    0

    Halo for weaklings...

    The "halo effect" is a rationalization for those who can't possibly let themselves imagine that they've made a poor investment by being Windows partisans all these years. "All those people buying Macs couldn't possibly be getting them because they are better computers, it must be something else. What I know, it's a "halo effect.""

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