Competition is good!

iPod tipped to boost Apple's desktop share

Apple could soon control 5 percent of the desktop computer market, Morgan Stanley predicts, thanks to the success of the iPod

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Statistics released by other analysts suggest that the iPod may already be having a healthy effect on Apple's desktop PC business. According to figures from IDC this month, Apple's desktop market share in the US was 2.9 percent in the fourth quarter of 2004, up from 2.2 percent the previous quarter and 2.1 percent for the fourth quarter of 2003.

The trend is expected to be a long-lasting one as the iPod has become so well-established. The well-received Mac Mini has not yet had the chance cause any impact on the sales figures, as it was only launched in January, but is also expected to help a Mac resurgence.

The hardest hit PC vendors will be those that rely most on their brand, such as HP, said Morgan Stanley. HP sells a branded version of the iPod, but analysts think it unlikely that many users would give HP the credit for the player's design and usability.