Bear Sterns analyst Andrew Neff is fretful that Apple continues to lose PC market share, he said in a note to clients released yesterday.

Neff is concerned that Apple's 'Trojan Horse' strategy – persuading iPod users to buy Macs – isn't working. Though iPod and iPod mini have sold well, Neff is concerned this has not translated into strong Mac sales, particularly of G5 Power Macs.

"Our concerns are that the G5 cycle has disappointed, Apple is still ceding PC share, and at some point iPod mini supply will catch up with demand, which could derail the stock's momentum and temper further earnings per share growth," he said.

Neff does see promise ahead, citing the release of a new iMac, HP's move to ship an own-branded iPod and an increase in G5 processor speeds as offering positive potential.

Neff assesses Apple's stock as 'peer perform'.