iPod creates ‘word-of-mouth wildfire’ | iLounge News

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iPod creates ‘word-of-mouth wildfire’

Piper Jaffray raised its target price on Apple stock to $100 from $52, citing a “halo effect” from satisfied iPod users. The firm said that in a survey of 200 users, 6 percent were former PC users who have purchased a Mac after becoming an iPod owner, while 7 percent were former PC users who plan to buy a Mac within the next 12 months. “We believe that the remarkable satisfaction with the iPod creates a word-of-mouth wildfire that generates new customer interest in Apple products,” Piper Jaffray said.

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Comments

1

I bought my iMac G4 after buying my iPod 3rd gen.  I can completely understand this.  I’m a big Linux/Irix user, so I’ve only owned SGI machines or PCs that I built myself.  So while I’m not a “convert” from PCs (still use Linux all the time), I did add an iMac to my home network because of my experience with the iPod.

Go Apple!

Posted by m. sherman in Northern VA on November 22, 2004 at 6:45 AM (PDT)

2

Funny….. for me as a previous Mac owner who never had one that didn’t have quality defects requiring in-Shop service, I was actually very hesitant to buy an iPod.  While I’m very happy with my two iPods, I still wouldn’t buy a Mac computer because of Apple’s quality control.

Posted by miketex on November 22, 2004 at 6:53 AM (PDT)

3

Apple consistently has THE highest hardware reliability (and best support) of all PC makers.

That’s from LARGE-scale Consumer Reports surveys done every year for several years. A new one just came out. And, as always, Apple wasn’t just ahead, they were ahead in every SUB-category of both reliability and service—lapops and desktops alike. And not by a little—they’re really ahead of the pack. As Consumer Reports noted, while other companies’ quality control gets worse, the best (Apple) just keeps getting better. And this is CR who hates to say nice things about Macs smile

Bad luck is possible even so, though—I feel your frustration! I’ll keep choosing Apple, not because they’re perfect, just because they’re the best.

Posted by Nagromme on November 22, 2004 at 8:09 AM (PDT)

4

The iPod does have incredible power for change because it’s such a harmless device, and by that I mean it takes place not as a computer but just like an ordinary audio device. Its looks reflect the elegance of Apple that comes at a price. And it very well has made me want an Apple notebook :D

Also, below is a video of a CNBC story regarding the news from Piper Jaffray.

iPod Halo Effect, CNBC Story

Posted by Ink Noise on November 22, 2004 at 12:16 PM (PDT)

5

200?  Hardly a broad sample.  6% is worthy of bragging, out of a sample of 200?

Someone is desperate this holiday season to try to sell something besides iPods.

Posted by stark23x on November 22, 2004 at 12:23 PM (PDT)

6

better buy some apple stock soon!  And some more ipods!!!!! grin

Posted by apple juice in USA on November 22, 2004 at 12:27 PM (PDT)

7

Nagromme-

I don’t know what Consumer Reports you read, but the one currently on newsstands has Apple’s overall score less than or equal to almost all the PC’s in the mid-range category.

The Apple iMac 17” G5 scored equal to a $600 eMachine overall.  The iMac also scored less in individual sub-categories to almost every PC in the mid-range.

In the text of the article (as expected) they lauded the iMac for its stylishness and Apple (like you said) also faired very well in service.

Apple makes great machines, no doubt, but it’s interesting to see that the report put a $600 eMachine on equal footing with the $1,600 iMac.  That, along with the software investment it takes to switch and the learning curve, leaves me to think it’s gonna take a bit more than the iPod to sway the masses over.

Apple will get a few, but not all.

** The eMac scored so low that it was scary.

Posted by Talking Madness in Los Angeles on November 23, 2004 at 7:18 PM (PDT)

8

Two observations.

The first is that iPod buyers tend to be more affluent than the general population. Many tech buyers within this demographic are “trading up”. Therefore there is a liklihood that rather than buy a $700 eMachines/Averatec or a $900 Dell, they will go for a middle-high end boutique laptop, such as a Voodoo, an Alienware, or even, yes, an Apple.

Secondly, at a 99% confidence level, this sample size of 200 means that the margin of error for this survey is +/- 9%. Therefore the stated percentages are within the margin of error.

Even if you open it up to a 95% confidence level, the MOE is still +/- 7%. If you wanted to drop the margin of error down to +/- 3% at a 95% confidence level, you’d need a sample size of just over a thousand respondents.

Many of these analysts have very little grasp of simple statistics, or are so cynical that they choose not to share important constraints on their prognostications with a willingly gullible public.

Posted by Demosthenes on November 24, 2004 at 7:26 PM (PDT)

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