A couple of points:
Of course there is a "halo effect". Most people won't switch, but a significant growth in market share will occur if only 2 or 3% out of millions of windows iPod users take the plunge. Also, the halo effect is something that we're just now starting to see. So far, roughly 9-10 iPods have been sold (if you use Q1 estimates of 4 million). 9 million more are estimated for the rest of fiscal 2005, and then 23 million are predicted for fiscal 2006, and those figures are without the assumption of an iPod flash, which would increase unit sales by a lot. Apple will have a different market share, or at least mind share within the next four years, and for any anecdotal evidence anyone has to the contrary, just remember, it only has to be 2 to 3%.
I'm sick of people saying "they've lost focus on computers". The iPod is certainly growing, but only represents a quarter of total revenue. PowerBooks bring in more money, as well as powerMacs. The iPod is saving the platform, and a big reason why the retail stores are also doing so well. Bottom line: Apple's increased profits are good for existing users in three ways.
(1) The company will be around for the long-term
(2) Revenues are expected to growth more than 50% in the next two years, at this size Apple will be able to spend more on other aspects such as R&D, Marketing, etc
(3) Buy the stock, make some money. Most estimates value it at mid-seventies all the way up to 100. Instead of saying "what does it do for me", go buy some stock, and then realize next year you'll be able to buy a powerbook G5 and an ipod with your gains.
Of course there is a "halo effect". Most people won't switch, but a significant growth in market share will occur if only 2 or 3% out of millions of windows iPod users take the plunge. Also, the halo effect is something that we're just now starting to see. So far, roughly 9-10 iPods have been sold (if you use Q1 estimates of 4 million). 9 million more are estimated for the rest of fiscal 2005, and then 23 million are predicted for fiscal 2006, and those figures are without the assumption of an iPod flash, which would increase unit sales by a lot. Apple will have a different market share, or at least mind share within the next four years, and for any anecdotal evidence anyone has to the contrary, just remember, it only has to be 2 to 3%.
I'm sick of people saying "they've lost focus on computers". The iPod is certainly growing, but only represents a quarter of total revenue. PowerBooks bring in more money, as well as powerMacs. The iPod is saving the platform, and a big reason why the retail stores are also doing so well. Bottom line: Apple's increased profits are good for existing users in three ways.
(1) The company will be around for the long-term
(2) Revenues are expected to growth more than 50% in the next two years, at this size Apple will be able to spend more on other aspects such as R&D, Marketing, etc
(3) Buy the stock, make some money. Most estimates value it at mid-seventies all the way up to 100. Instead of saying "what does it do for me", go buy some stock, and then realize next year you'll be able to buy a powerbook G5 and an ipod with your gains.
