Analysts have welcomed yesterday's launch of Apple's iPod.

Rob Enderle, research fellow of Giga Information Group, said: "Apple won't be able to build enough of these things." He believes the product is likely to become a popular gift for Macintosh users and expects Apple to struggle to manufacture enough of them to meet demand this holiday season.

Tim Bajarin, president of Creative Strategies, said: "The 5GB drive is extraordinary." He observed that Apple faces some difficulties as it launches its new product in a depressed market.

Take-up He said new product launches are risky because "adoption cycles tend to be longer among consumers". He added: "It remains to be seen how long it takes for Apple to turn a profit from this. But probably the risks are minimal."

Praise for iPod came from Susan Kevorkian, an analyst with International Data Corp. She claimed: "This definitely raises the bar in portable-music devices in terms of industrial design and capacity."

Other PC manufacturers have also introduced digital devices in recent months, as comments, it's a strategy to add extra value to PC products.

Compaq launched its iPaq Music Center in June. It includes a modem and hard drive and has been developed to add functionality to home stereo-systems. Hewlett Packard has also announced a similar product – this time integrating CD-R – called the Digital Home Entertainment Center.

Enderle remarked: "People aren't willing to buy a new personal computer, but they are willing to buy things to accessorize it."

Apple closed down slightly at $18.14 yesterday. However, Nasdaq suffered slightly during the day as investors reacted to loss-making quarters from Compaq and Amazon.