Apple will ship 1 million iPod shuffles and 3 million iPods this quarter, according to Merrill Lynch analyst Steven Milunovich.

He expects that updating the iPod mini will mean that Apple will not see as large a decline in sales of the iPod in this quarter as would be expected, according to Bloomberg News.

Sales in the Christmas quarter reached 4.6 million, Milunovich expects that the company will manage to sell a total of 4 million iPods this quarter.

Milunovich wrote in a research note to clients that he expects that today's price reduction on the 60GB iPod photo suggests that: "Demand has been less than spectacular since its October debut."