Apple continued to build on its dominance of the digital music industry in 2005, and saw the successes slowly bleed into its personal computer business as industry analysts began to gauge the iPod's "halo effect."

The folks at Cupertino would also do the once unthinkable and admit that Apple was falling behind the rest of the industry by continuing with the PowerPC architecture, a decision that could shape the company in 2006 and beyond.

Apple started the year by opening an Irish version of the iTunes Music Store four days before Macworld. However, the biggest fireworks were yet to come.

At Macworld on January 11, Apple CEO Steve Jobs announced that the company was joining the low-price PC industry by introducing an entry level Mac Mini at $499. Jobs also unveiled the iPod Shuffle, a diminutive flash player that would now serve as the entry point to Apple's iPod line.