Morgan Stanley expects iPod and Mac market share to climb and an Apple mobile phone will ship in 2006.

Morgan Stanley analyst Rebecca Runkle yesterday predicted that Apple's shares may climb as much as 25 per cent next year.

"We believe market share and new product opportunities accelerate even more than we expected in 2006," she said.

She revealed internal Morgan Stanley research, which finds:

- More people plan to buy an iPod or an accessory this Christmas than a mobile phone.

- People who own iPods are three times more likely to buy Macs.

- iMac and iBook sales may climb 43 per cent in 2006 and 2007.

She also predicts an Apple mobile phone which could generate $1.2 billion in sales, she reckons.

Fourteen analysts assess Apple as "buy" and 11 a "hold."