The Prudential Equity Group has raised its sales and earnings per share estimates for Apple because "music has legs".

The group states that it believes Apple's first quarter is tracking above expectations because of strong demand for Apple's iPod products, including the iPod shuffle.

The company said: "The music story not only has legs but is capable of materially moving the revenue and earnings needles," reports Sharewatch.

Prudential raised the revenue estimate for the second quarter to $3.16 billion from $3 billion and its EPS estimates to 25 cents a share from 23 cents a share.