Analysts now expect Apple to sell 11 million iPods by in the December quarter, while the company makes 100,000 iPod nanos each day.

Piper Jaffray analysts Gene Munster and Michael Olson raised their original expected 9 million iPod sales estimates to 11 million yesterday, citing an Apple share target price of $70.

Sales figures could be even higher. Citing "reliable sources", AppleInsider claims Apple to be making 100,000 iPod nanos each day. The product is rapidly selling-out, with a two-week wait on the 4GB model in the UK.

The report also claims Apple is considering launching a 1GB iPod nano as an alternative to the 1GB iPod shuffle, which is presently unavailable in the US or UK.

The low-end iPod shuffle is expected to get a refresh at Macworld Expo San Francisco next month, with various reports claiming the product will be smaller, potentially cheaper and carry a small screen.