Apple sold one million iPod nanos in just 17 days, the company confirmed last night.

The news keeps getting better for Apple in its music business segment. iPods accounted for 75 per cent of all MP3 players sold in August, the company revealed.

Its music business (including iTunes) accounted for 40 per cent of revenue, the company declared.

Apple's huge fighting fund

Apple now has $8.2 billion in its cash reserves, leaving the door open for strategic acquisitions.

The company shifted 6,451,000 iPods in the quarter for $1.212 billion revenue. Its "Other Music Products" category (iTunes Music Store and iPod related services and accessories) attracted a further $265 million to the company's coffers.

Apple also observed continued growth in its iPod ecosystem, with 1,000 accessories available from third party manufacturers.

Apple's executive vice president of worldwide sales and operations Tim Cook moved to minimise reports that the iPod nano scratches easily, saying the company has received "very few" complaints, he added: "We do not believe this is a big issue."

Increased 'mix' of music products mooted

The company has no plans to lose momentum in its music category. Its gross margins will be down in its December quarter due to an "increased mix of music products", said chief financial officer Peter Oppenheimer.

iPod video? Rumours swirl

Think Secret last night said that its previous report dismissing the conceit of the release of an iPod for video was potentially incorrect.

"Today may in fact see the release of a video iPod, while Mac updates may not be delivered until next week," it claims.

It appears Apple will release music videos through iTunes Music Store for the new products, and also deliver a new tool consumers can use to compress and transfer their own home-made video to their iPods.