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Analysts believe in iPod ‘halo effect’

Following Apple’s robust earnings and shipment numbers yesterday, two analysts said today that the so-called iPod “halo effect” was behind the increase in Mac sales. “There is quantitative proof of the halo effect,” Merrill Lynch analyst Steven Milunovich said in a research note obtained by MacMinute. “Mac revenue increased by 29% year over year, clearly gaining share in a PC market showing little dollar growth. iPod is bringing new users into the tent, benefiting not only Mac sales but also peripherals and software.” Piper Jaffray analyst Gene Munster also said the halo effect had a lot to do with Apple’s positive numbers. “Our confidence in the halo effect has increased based on Mac sales of 1.07m units in the March quarter compared to Street expectations of ~970k units,” Munster said. “We believe the halo effect is the primary driver of upside to Mac units. We expect the halo effect to accelerate in 2005 as the total installed base of iPods increases from 10.3m at the end of CY04 to an estimated 35m by the end CY05.”

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