Apple's biggest problem is meeting demand - but the UK has emerged as the company's strongest European market, reports the Sunday Times.

The Sunday Times Business section yesterday published an interview with Apple's European head, Pascal Cagni.

The report observes that the iPod has moved from being a cutting-edge device for metropolitan congnoscenti toward being a mass-market success.

"The iPod is approaching a tipping-point that will make it a genuine mass-market product. And Christmas is just around the corner," the report states.

The Sunday Times also reveals that Cagni has relocated from his previous base in Paris, taking up residence in the UK.

Cagni said: "The UK is our strongest country now, no question. We have been performing superbly with the iPod. The adoption curve is much stronger than in other countries in Europe. The Christmas to come will be immense.”

The report also point out the way the iPod has transformed Apple's fortunes, from a $6 billion a year company into a $12 billion a year company, in just 18-months. iPods represent 22 per cent of group sales.

Apple's aiming big: "The iTunes music store is the key driver to establish the iPod as the Walkman of the 21st century,” he said. "We are at the beginning of something really big".

Cagni revealed that iTunes Music Store UK is doing very well, calling the region a "country which loves music".