Hey, where’s my Apple halo?

by Mathew on June 2, 2006 · 4 comments

Remember the “halo effect?” That was the term some analysts came up with for the boost in Apple sales that was expected to result from the smash success of the company’s iPod music and video players. The assumption was that all the love for the iPod would spill over onto the rest of Apple’s business, and that people would be drawn to purchase more Macs and iBooks and so on. There were several articles and analyst reports last year that said the effect seemed to be working — but now there are numbers that call those early reports into question.

According to the latest report from Gartner Group — obtained (ironically) by Apple Insider — Apple’s worldwide market share actually dropped in the first quarter of this year, to 2 per cent from 2.2 per cent in the same quarter of 2005. Even in the U.S., the company’s primary market, its share barely budged during the quarter, remaining more or less flat at 3.6 per cent (Gartner says the company’s share rose by one-tenth of one per cent). Even if you assume that lots of people held off buying because they were waiting for the new Intel models, that’s still not a great performance — and not much evidence of a halo.

If you’re wondering why it’s ironic that the Gartner report shows up on Apple Insider, it’s because the blog was one of several that were sued for leaking inside information about Apple products — a lawsuit that Apple just recently lost. Could Apple Insider be feeling a bit of what the Germans call schadenfreude?

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