Apple Mines the Mainstream

Now that it's won the hearts and dollars of music fans with its ubiquitous iPod, there are signs that Apple Computer (AAPL Quote) is moving toward its own version of conquering the PC market.

For Apple, that means mulling new strategies to go beyond its hardcore fan base in the hopes of adding just a few valuable percentage points to its single-digit U.S. market share.

"They aren't going to double their market share in MP3 players -- they already own 70% of that market," says Mark Stahlman, a technology strategist at Gartner Invest. "The only opportunity I can think of for Apple to substantially expand their business would be to double or triple their market share of Macintoshes."

The momentum from its latest quarter suggests the company is poised to do just that. Apple wowed the Street with its fourth-quarter Macintosh sales, which grew 30% to 1.6 million units over the comparable period last year.

Also, the latest Gartner PC report shows the company growing its third-quarter U.S. market share from to 6.1% from 4.6% a year earlier.

"They were more of a niche player in the past," says Richard Stice of Standard & Poor's. "Now they're becoming more broad-based."

One reason Apple is gaining share in the PC market is because of the so-called halo effect, Stice says, which had predicted that satisfied iPod users would migrate toward Macs. For the past several quarters, more than 50% of Apple store customers were new to the Mac platform, management has said.