“Apple Computer’s iPod boosted the company’s leadership position in the market for digital music players in 2004 and played a large role in restoring Apple’s legendary shine among technology investors. As a sign of Apple’s digital-music strength, the company shipped 2.7 million iPods in the third quarter alone, and NPD Techworld estimated that iPods made up 66 percent of all digital music player sales in the period. Many industry analysts estimate that Apple will report more than 4 million iPod shipments for its fourth quarter,” Rex Crum reports for CBS MarketWatch.

“Many computing-industry watchers believe Apple will likely take the wraps off a new, flash memory-based iPod when Jobs greets Macintosh fans at the MacWorld show in San Francisco on January 11,” Crum reports. “Steve Lidberg, of Pacific Crest Securities, says that a flash-memory music player, and new initiatives in 2005, should help Apple grow its music business to more than $5 billion by 2006. ‘We look for Apple to introduce a flash-based iPod and wireless accessories and new types of audio content to monetize is customer base,’ Lidberg said, adding that he expects 2005 to be a ‘strong year’ for Apple to set up new partnerships to bring iTunes to more devices.”

Full article here.