Apple's new Intel-powered Macs are selling better than expected, according to UBS analyst Ben Reitzes.

In a note to clients released yesterday, the analyst notes strong demand for all the Intel Macs, including the Mac mini.

"The new Mac minis appear to be off to a stronger-than-expected start as our checks continue to indicate units are being purchased both as media centres and low-cost entry-level Mac options," Reitzes wrote.

The analyst notes strong demand for the products across Apple's reseller network, including in big chains such as CompUSA. He expects healthy Mac sales in the quarter.

He expects year-on-year Mac unit sales growth of about 5 per cent, predicting 1.2 million Mac sales.

The analyst does warn that iPod sales may be slowing down slightly, reflecting deceleration across the MP3 player market, he said. "Despite the possibility of a slowing MP3 market, we continue to believe sales of video iPods are relatively solid, with many store managers indicating that sales of video iPods may be even stronger than that of nanos."

He anticipates price cuts across the iPod range while Apple prepares new versions of the products for release during the summer.

Reitzes assesses Apple stock as a 'Buy' with a $95 target price.