iTunes tops 500m downloads

Apple Computer Inc., which generates a third of sales from the iPod music player, said downloads from its iTunes online music store topped 500 million.

Amy Greer, of Lafayette, Ind., downloaded Faith Hill's ''Mississippi Girl" yesterday as the 500 millionth song sold. She won 10 iPods, a credit for 10,000 songs and a trip for four to a Coldplay concert, Apple said yesterday in a statement.

Cupertino, Calif.-based Apple surprised analysts last week after reporting iPod shipments rose to a record 6.16 million last quarter, eclipsing the average estimate of 5.29 million. Chief executive Steve Jobs generated record iPod sales in a quarter that is typically less robust than other periods by selling the music player through Hewlett-Packard Co. and Wal-Mart Stores Inc.

The iTunes store features more than 1.5 million songs from most major record companies and more than 1,000 record labels.

Also yesterday, Apple became the number four maker of personal computers in the nation in the second quarter as sales of its Macintosh systems grew nearly three times faster than the rest of the market.

Apple grabbed 4.5 percent of the market, behind Dell Inc., Hewlett-Packard Co. and Gateway Inc., researcher IDC said yesterday in a statement. Lenovo Group Ltd., which bought International Business Machines Corp.'s PC unit, saw its share drop.

Apple's shipments rose 33 percent, almost triple the 12 percent rise in overall US PC sales, IDC said. Apple said last week Mac shipments reached a five-year high, spurred by interest in its iPod digital music player. Worldwide PC shipments rose 16.6 percent on sales of laptops and surging demand in Europe and Africa.

In another development, Apple has recently held discussions with major recording companies, seeking to license music videos to sell through iTunes Music Store, several people in the media industry briefed on the discussions told The Wall Street Journal.