Monday, January 17, 2005

Analysts who track Microsoft Corp. and the computer market say the Mac Mini could begin to change the competitive landscape. The computer will start at $499. It will be sold without keyboard, display or mouse, but with input ports that Apple says are designed to let most PC users continue using the keyboards, displays and mice they already own.

Even before the release of the Mac Mini, slated for later this month, Apple reported new momentum. The company said last week that it shipped more than 1 million Macs in its quarter ended Christmas Day, a 26 percent increase over the same period the previous year.

Analysts attribute that in part to an apparent "halo effect" from the soaring popularity of Apple's iPod. The dominant portable music player, which works in conjunction with both Macs and Windows PCs, has introduced many people to Apple products for the first time.

But even if Apple sells one Mac for every iPod it sells, the result would still be a drop in the bucket compared with the more than 170 million personal computers sold worldwide annually. The vast majority are Windows PCs.