The launch of the iPod mini is exceeding all expectations, worldwide iPod marketing manager Danika Cleary revealed.

Early indications are that iPod mini is overtaking the first-generation iPod's sales of 125,000 units in its first quarter.

There are reports of long queues at Apple's retail stores, and of stocks running short.

GartnerG2 analyst Mike McGuire calls the iPod mini "an impressive little unit", and says its success is due to Apple's music store, its technology, design and marketing.

"You really have to take all of these things into consideration, and you can't discount Apple's strength in creating compelling marketing campaigns," McGuire told TechNewsWorld.

McGuire said the iPod mini's success means Apple is being closely watched, as the industry eyes Apple's business model: "They're humming along, but it's not an unobstructed path to success. It will be interesting to see how long the business model will be profitable."

Owen Linzmayer, author of Apple Confidential 2.0, told azcentral: "The iPod is important because it's generating a lot of cash and mind-share that goes beyond its usual share of Apple users."