Tipping point for Apple?

Back in June I predicted that this back-to-school season would be a phenomenal one for the iMac, signaling a change from small niche player to the beginning of something much bigger. This week my prediction proved true, as iMac sales grew at a rate (30%) twice as fast as the industry. Half of those sales were to first time iMac owners.

Tim Cook, Apple's Chief Operating Officer stated to the press that:

Students helped account for the surge in Mac shipments, during a quarter that Cook called "the most successful back-to-school season we've ever had."

As of Friday, Apple's new operating system (Leopard) was released. I think that as of this week, Apple's little iMac has reached a "Tipping Point" in the PC industry.

In the business world, the term "Tipping Point" is used to refer to point at which a product reaches a certain level of popularity, and conditions are just right, that what were previously gradual sales begin to take off.

And the conditions are right for Apple, Consider the following:

• Windows Vista owners have played with their new computers, and are either underwhelmed or wildly dissatisfied with the upgrade. They are telling their friends.
• Mac OS Leopard just came out, users will love it (I just played with it for an hour at the Mac store). They will tell their friends.
• With the advent of browser based applications (Web 2.0), the web browser is becoming more relevant that Windows, making switching easier.
• You can run your Windows applications on a Mac.
• Brand awareness is at an all time high, thanks to the iPod.
• As of this week, we are no longer waiting for Apple to release products (the iPhone and Leopard have arrived).
• Microsoft is distracted with the Google threat instead of focusing on it's core business, software.
  
• In the hit show 24, the bad guys use PCs, the good guys use iMacs.
  

If I were a betting man, I would venture to say that by this time next year, the iMac will realize a growth rate 5x higher than that of the computer industry.

There are only two things left that are holding them back:

1. Price - Still really high compared to a PC
   
2. Distribution - It's hard to find an Apple store (In Canada), and the big box stores hide iMacs in the back, keeping the PCs prominently on display