PortalPlayer – the company that makes components for the iPod – plans to go public this week.

Demand for shares in the company has been strong due mainly to the success of the iPod, reports Silicon Valley.com.

Equity specialist Cantor Fitzgerald's Sal Morreale said: "It's on everybody's radar screen now. People want a piece of the iPod, and they haven't had too many chances."

Even with the iPod – which accounts for a massive 93 per cent of PortalPlayer's sales – PortalPlayer's isn't yet making a profit, though its net losses have narrowed.

Even PortalPlayer has some concerns about its reliance on the iPod. In its SEC filings it noted that the relationship with Apple makes it vulnerable. The company writes that if Apple choose another supplier, or developed the components itself it "would significantly harm our business".

But Morreale thinks the current iPod success outweighs any future risks. "You just mention iPod and folks go nuts. It's that simple."

PortalPlayer expects to sell 6.25 million shares at $11 to $13 a share.