Analysts at Morgan Stanley Dean Witter are optimistic that Apple will reach its stated revenues target for the second half of the financial year.

The company believes Apple is likely to post revenues of $1.6 billion for the current quarter, which ends this month. It says: "Recent channel checks suggest Apple will come in at, or just below, our top line number of $1.6 billion."

The analysts say that this would be a "good result in a very tough market", according to

Wall Street brokers First Call/Thomson Financial estimate the company's channel inventories are currently in the three-week range, but expect these to rise to four by the end of the quarter.

Apple stock closed at $23.75 on yesterday's trading.