Ahh, the iPod. This small device has inspired loyalty and admiration in the minds of millions--more than 30 million iPod users, in fact. Every move of its maker, Apple, unleashes a torrent of Internet chatter and news articles that leave many wondering if every business publication is vying to be the next MacWorld.

However overhyped, the iPod family of portable music players has hit a home run for some very good reasons. "It's a smart product, intuitive to use and has a closed system with iTunes so you get the best selection of music and convenience of the Internet," said Jeff Joseph, vp of communications for the Consumer Electronics Association. "Add to that, it's reasonably priced and easy to transport. It's just a good product."

It's also a great example of brand strength. Even before the iPod, Apple had built its brand into something so powerful it elicited zealous loyalty. The iPod was its first foray into the mass market after more than two decades as a computer maker and designer. With this product, the company has managed to capture the vast majority of market share and take ownership of a category in its infancy. The benefits to Apple are clear, but what does all this mean to the larger retail industry from specialists to discount department stores?

"Apple is very restrictive with their brand halo," said Stephen Baker, director of industry analysis for The NPD Group. "They're selling the hell out of iPods but we haven't seen a big halo effect at non-Apple retailers for non-Apple computers."

For Apple, the iPod has helped to drive traffic to its own retail locations and is contributing to an uptick in the adoption of Apple computers. Piper Jaffrey analyst Gene Munster, closely tracks this "halo effect," and has seen a continued rise in sales of Apple computers as the iPod's popularity grows. "We expect iPod to continue to be a foundation for growth in other parts of Apple's business," he wrote in a research note. "We expect that by the end of [the calendar year 2005], more than 35 million iPods will have shipped, providing Apple with a greater scope of awareness for various products."

According to Munster, the halo effect is already well under way, with 1.18 million Macs shipped in June alone.