Apple Hanging on a 'Halo'

Many Apple bulls believe the company is already starting to gain share and will continue to do so. Not only has the iPod introduced consumers to the renowned ease of use of Apple's products, but growing concerns about the security of computers based on Microsoft's(MSFT) Windows operating system are likely to drive sales of Apple's alternative, they say.

"They are making the transition from the music player to selling more PCs," says Alan Lowenstein, a portfolio manager at American Fund Advisors, whose fund has no position in Apple. "I think you are going to see that more and more people are buying Apple computers."

Some analysts, though, have been skeptical of Apple's near-term prospects. Last month, the company said it will switch over to chips made by Intel(INTC) as the basis for its Macintosh computers. As a result, some Mac customers have said they may hold off on buying computers during the transition, waiting to see how well the company will support its older PowerPC-based Macs and how older software will run on the newer Intel-based machines. During similar transitions in the past, Apple's market share has slumped.

Wednesday's report may be the first sign for investors of whether the company's Mac sales will wilt or blossom this time around.

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