Akademik

n.

The increase in the sales and perceived prestige of Apple products based on the massive popularity of Apple's iPod digital music player.

Apple executives and industry analysts call this the IPod "halo" effect.

They say it works like this: A consumer such as Miss Farker, who had primarily used computers that operate on a Windows-based operating system, gets an IPod.

They fall in love with it, so much so that they begin buying other Apple products, eventually replacing their PC with a Macintosh, an IBook or another kind of Apple computer.

— Chris Baker, "iPod's Halo," The Washington Times, May 5, 2005

Merrill Lynch today reiterated its "buy" rating for Apple, saying it has heard the company is performing well in the higher education market "based on the iPod halo effect, Unix operating system, and brand recognition." The research firm said it believes the company's earnings could have upside, due to European music store sales and international iPod sales.

— "Merrill Lynch reiterates 'buy' rating for Apple," MacMinute.com, August 27, 2004

Merrill Lynch analyst Steven Milunovich was among a number of analysts who suggested in recent weeks that Apple might be able to outdo earnings estimates through strong iPod sales.

"Apple could beat our estimate, based on strong iPod demand and a pick-up in PC sales to the creative market," Milunovich wrote in a research note last week. "Anecdotal evidence suggests some switching to Mac due to the iPod halo effect."

— Ina Fried, "iPod helps Apple earnings sing," CNET News, April 14, 2004