Shares in Apple soared in early trade in New York today after a report suggested that the iPod has pushed users to dump their PCs in favour of Apple's Macintosh computers.

Industry analysts have raised the possibility of a "halo effect" where iPods, the iconic range of digital music players, draw people towards other Apple technologies. Gene Munster, the Piper Jaffray analyst, set a $100 price target on the stock after citing a survey that suggested that Apple's iPod had attracted buyers to its computers, which have traditionally commanded a loyal but niche following.

Apple climbed 12 per cent, or $6.62, to $61.78, as investors reacted positively to the research.

In an interview with The Age in Melbourne this month, iPod co-creator Stan Ng said: "The iPod has given a great first experience to people who might not otherwise consider Macintosh.

"Ease of operation is an ace in the hole for us. Another is the iLife suite of products. More and more, our world is going digital. People are starting to explore their music, their images, their movies. With this technology they can organise their digital assets."

Mr Munster said a survey of 200 iPod users in the US showed that 6 per cent of former PC users bought a Mac after buying an iPod. Another 7 per cent said they intend to buy a Mac within the next 12 months.

"At the end of the day, we think the numbers justify the iPod's reality in driving Apple's business," said Mr Munster, who maintained his "outperform" rating on the stock.

The study included 154 people who were PC owners at the time they bought an iPod. Mr Munster's survey also showed a high amount of satisfaction with the iPod. Out of 200 respondents, 199 said they were at least "generally satisfied" with the product.

Mr Munster's $100 price target on Apple's stock is nearly double his prior $52 point. The last time Apple shares reached $100 was in intraday trading on June 20, 2000, a day before Apple had a two-for-one stock split.

Separately, Fulcrum Global Partners analyst Robert Cihra raised his price target on Apple to $65 a share because of the strong demand for iPods and the new flat-panel iMac G5 PC.

He said signs from Apple's supply chain show the company is meeting market demands. Mr Cihra increased his estimates on iPod sales in Apple's current quarter to 4 million from 2.9 million, and said the iPod would account for 33 per cent of the quarter's revenue, up from 13 per cent a year ago.

Mr Cihra also raised his estimates on the quarter's iMac shipments to 286,000 units, up 26 per cent from a year ago, and that improvements in notebook sales should help Apple's total Mac sales reach 968,000 units in the quarter.

Should Cihra's estimates hold, it will be the first time in almost three years that Mac shipments will have grown faster than the overall PC market.

Mr Cihra also raised his fourth-quarter revenue forecast on Apple to $3.23 billion from $2.86 billion. He currently holds a "buy" rating on Apple's stock.

www.apple.com/uk/ipod

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