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December 20th, 2006, 15:56 GMT · By Codrut Nistor

iPods Are Selling Better Than Expected

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Contrary to any sane analysis of Apple's sales, it seems that the iPod shuffle is the product that surpassed the expectations
more than anything else, and it seems that this out of ordinary fact is not that unexpected if we add the fact that we're talking about this amazing player called iPod shuffle. Outrageously small, the second generation, introduced in September, weighs only 15 grams and it's indecently small.

The second generation iPod shuffle offers USB connectivity via an included dock that is able to transfer data using the headphone jack, and it can also be used as a flash drive, just like the first generation iPod shuffle. Anyway, in order to reduce the player's size, this second generation doesn't have a USB connector on itself, so the dock is "a must" when you want to connect your 2G iPod shuffle to a computer.

"While Apple has maintained a robust inventory, our checks with 40 big-box retailers and online vendors show that demand is outweighing supply in these channels", wrote PiperJaffray's Gene Munster in a recent research note, referring to the second generation iPod shuffle that we talked about so far. The analyst noted that Amazon and Target have both ran out of iPod shuffles, and one of Amazon's affiliates, BlueProton, sells the player at a 30$ premium. Even more, the shuffle is the only iPod not shipping within 24 hours from Apple's online store.

Although it's too early to estimate December's iPod sales at this time, Munster's analysis suggested that Apple could sell up to 15 million iPods in the last quarter of this year, and the reason... "Since the shuffle was not released until 3 November, the player will likely have a material impact on the November and December NPD data and our current expectations could prove to be low". This way, a small gadget like the iPod shuffle can push a company like Apple higher!

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