Apple has responded to reports that Dell has stopped selling its iPod at the PC manufacturer's retail stores.

The company told MacCentral: "As part of the regular renewal process with Apple Authorized Resellers, we invited our resellers in the US to sign new agreements as of April 1, 2003."

"Resellers that have not currently renewed made up less than 1.5 per cent of Apple's worldwide revenue in 2002. Since contracts only expired recently, some contracts continue to be signed."

The MacObserver Web site notes that with net 2002 sales of $5.742 billion, that 1.5 per cent represents a potential $86 million in lost revenue.