HAPPL Holidays - 20 million iPods this quarter?

Carl Howe of Blackfriars Communications predicted that Apple Computer, Inc. (NASDAQ:AAPL) will post a staggering $7 billion in sales this quarter. He claims that this number is fueled by the number of iPods that the company is predicted to sell -- 20 million, worth about $3.3 billion in revenue.

Howe attributes this drastic increase, up from 14 million sold in Q4 2005, to a few things. He thinks that iPod's current price points now address more market segments. Those who had to pass on the Nano last year because of its $199 price tag can now grab it for $149. Apple will certainly make up for these lower prices in high sales volumes. Also, don't forget about the charity incentive for the red Bono iPod because Apple vowed to contribute $10 to the Global Fund to fight AIDS in Africa.

Howe also makes a valid point that consumers now have more reason to choose the market leader, Apple. Last year Apple was mainly a music player with a small selection of television shows. Now there are over a 1000 accessories, Walt Disney (NYSE:DIS) movies, lots of TV shows, car integration kits, and a deal with Nike, Inc. (NYSE:NKE) for a sports kit.

Obviously, Mr. Howe doesn't think that Microsoft Corp.'s (NASDAQ:MSFT) Zune -- with its $100 million marketing budget -- poses a real challenge to the supremely ubiquitous, white ear-budded player from Cupertino.