The halo is back . Only this time , Apple says it ’s sick a much extensive reach .
If your interest in Apple date back at least a decade , you may recall the conception of the iPod Halo Effect . That was the term used to describe the phenomenon where iPod consumers — many of whom were purchase their very first Apple - built merchandise — became so take with the music player that they come out spending their heavily - garner Johnny Cash on other Apple offering .
believe for a consequence a stat Apple trots out each one-fourth when it announces its fiscal carrying out — that around one-half of the Macs it sell through its retail fund are to client unexampled to the Mac . Apple first begin to highlight that trend around the same time iPod sale start their stratospheric mounting . Another noteworthy stat : Apple shipped 746,000 Macs and deform a profits of $ 38 million for the financial first quarter of 2002 — the first tail in which the iPod began shipping . By the fiscal first quarter of 2009 , when quarterly iPod sales reached their peak , Apple was selling 2.5 million Macs and reporting a $ 1.61 billion profit .
The iPhone’s success is trickling over to other product lines, according to Apple.
iPod sales have since tailed off , but the halo effect has n’t go bad away . or else , it ’s simply shifted over to Apple ’s iOS production crinkle , which is generating stellar sale of its own while introduce new customers to the ease of the companionship ’s intersection portfolio .
“ What is clearly happen now is that the iPhone is make a halo for the Macintosh , ” Apple CEO Tim Cook said earlier this week during anhour - farseeing sitting at the Goldman Sachs Technology and Internet Conference . “ The iPhone has also created a halo for iPad . ”
Again , the numbers stand out this claim . In itsjust - completed fiscal first quarter , Apple deal more than 37 million iPhones , a quarterly criminal record for the company ; it also tallied record Mac and iPad sale during the after part . For 23 consecutive quarters , Mac sales have outpace the increment of the overall PC market . While that stretching raven the 2007 debut of the iPhone , Apple seems to accredit its smartphone ’s popularity for avail to keep that streak alive .
Apple has opened six retail stores in China, including this one in Shanghai.
There ’s a key difference between the boost the iPhone is currently give Apple ’s business and the one it stick from the iPod in the Aughts , however . As Cook indicate out during the Goldman Sachs event , the iPod had its greatest encroachment on Apple ’s fortunes in the U.S. , Canada , Western Europe , Japan , and Australia — in other word , developed markets where the company was already established . “ It did n’t work intimately to the same level in Eastern Europe , Middle East , Africa , China , other portion of Asia , Latin America , ” Cook said . “ Because the great unwashed were already getting music from their headphone . ”
The iPhone , however , has been able to stretch Apple ’s reach into grocery store in ways that the iPod never could . Part of that falls to the aggressive way of life the party has spread out its smartphone patronage around the globe . For example , just three months after its debut , the iPhone 4S is already available in 90 res publica — the riotous smartphone rollout in Apple ’s history . Also facilitate Apple ’s feat in these newer markets is the decisive place that wandering phones have in people ’s lives .
Cook cited an heart - pop figure of speech at the Goldman Sachs conference . For 2007 — the year before the iPhone became widely available outside the U.S.—combined revenue from China , parts of Asia , India , Latin America , Eastern Europe , the Middle East , and Africa was $ 1.4 billion . Last year , those same regions accounted for $ 22 billion in sale .
“ The iPhone began to acquaint Apple to literally one C of gazillion of masses , ” Cook said . “ Some that buy it , some that did n’t , others that desired it . But it introduced our sword to hoi polloi who had never met Apple before . ”
Apple has opened six retail stores in China , let in this one in Shanghai .
That ’s paying dividends in China , in particular . Cook differentiate attendees at the Goldman Sachs group discussion that Apple ’s revenue from that state has develop from a “ few hundred million dollars ” to $ 13 billion last year . While the iPhone can claim much of the credit for that—“We really have been focused on sample to understand the grocery store there and then taking those learnings to other market , ” Cook said — Apple ’s other byplay are reaping the reward as well . The company ’s Mac business in China grew more than 100 percent in 2011 , roughly 10 times the growth rate of the balance of the microcomputer food market in that country .
More important , Apple call back there ’s still plenty of way for growth in China , which became the company ’s second - large market behind the U.S. last year . Retail store openings in Hong Kong and Shanghai last fall brought the number of Apple Stores in China to six ; Apple has said those stores are among its high traffic . Last October , Cook called China “ a giant market place for Apple , and one that ’s ripe for sales to consumer . ” It ’s no conjunction that the next edition of Mac OS X — Mountain Lion , which Apple announce on Thursday — let in a act of China - specific features such as improved schoolbook comment capabilities and support for Internet services that are popular in China .
And it ’s not the only market for the caller . speak to investor Tuesday , Cook noted that Apple is increasing its focus in Brazil and starting to do the same in Russia — two other land where iOS gimmick are helping the company get its understructure in the door . Brazil , for example , became the first state outside of the U.S. togain entree to the company ’s iTunes Match servicelate last year . It ’s those kinds of growth opportunities that has Apple bullish about the prospicient - condition possibilities for its iPhone halo effect .
“ There ’s passel more opportunity out there , and so I mean this is very , very fundamental and very enceinte for us , ” Cook said .
