Apple seems set to continue to dominate the digital music market, according to analysts at Jupiter Research and Piper Jaffray.
At Piper Jaffray, analyst Gene Munster expects iPod growth to continue at around 30 per cent each year. Munster notes that 39 million of the 68 million iPods sold so far were sold in the last year.
Munster also expects Apple's eventual foray into the mobile phone market to pay dividends, as the company will become "the first to offer a unified solution with the design and usability of the iPod".
Analysts at Jupiter Research also dismissed the threat to Apple's business from Microsoft's Zune player, saying its release will not significantly dent Apple's market share.
Zune has few features to attract users, the analyst say, adding that the wireless sharing functionality just "isn't that compelling".
"Zune version one isn't going to have a very big impact on the market," said JupiterResearch analyst David Card. "There's nothing on the horizon that looks like a game changer."
Apple CEO Steve Jobs has also dismissed the sharing feature as "slow", adding: "By the time you get it to work, that girl has gone."
Jupiter also dismissed any threat to the iPod from mobile phones, stressing that most customers aren't interested in wireless music downloads.
"The iPod will remain the top choice for US portable media device users, who will grow from 37 million this year to 102 million in 2011," the claim.
Greg Joswiak, Apple's vice president of iPod product marketing told Seattle Pi: "We have always been focused on trying to create the best possible product experience we can, regardless of what competitors are doing."