Deciphering the iPod effect. In the early 21st century Apple PCs were not faring well worldwide. During the first two quarters of iPod sales—in 2002—Apple’s PC sales made up approximately 2.23% of all PC sales worldwide. In 2003, Apple’s PC sales fell down below 2 percent for the first time in early 2000. On the other hand, something curious started to occur two years after iPods where first promoted on the global market. In 2004, Apple’s PC sales began to pick up—at least in the US in the regions that wholesale iPods appeared to be popular. Until 2005, 3 years after the promotion of the iPod, sales of Apple PCs almost doubled to 4% of all PC sales in the US.
Some speculate that the increase in Apple PC sales is in part due to the popularity of iPods; that a part of those who bought iPods where then turned onto the idea of having an Apple PC. However, during early 2000, buyers of PC sales rose, irrespective of PC sales. Was the iPod effect truly caused by turning PC loyalists onto Apple PCs or were Apple PC sales surging as a result of the strong performance of all computer sales?
Some argue that for many PC owners, purchasing an iPod constituted their first experience in to the world of Steve Jobs. Most studies conducted which tried to testify this fact did in fact find a correlation between first time iPod owners put up their interest in Apple products. One inquisition showed that iPod possessors with Windows PCs were over three times as likely to purchase a Mac.
In fact, after its introduction a little over five years ago, the iPod still controls the MP3/MP4 player market. Not only has Apple reinvented itself with the iPod, the domination of iTunes software, both for PC and Mac users, as a media player and music as well as multi-media purchasing and downloading software. In the first half of 2007, over 50 percent of Apple’s total revenue came from iPod sales and iTunes music downloads. Along with music videos and Podcasts, iTunes is changing the way that music is purchased as well as consumed—meanwhile, having a intensive effect on the music industry. By April 2007, it was already obvious that iPods where the best selling music player in the entire history of MP3 players as Steve Jobs.