Apple Australia is facing a shortage of iPods, as demand outstrips supply, reports ARN.

Bidding on local Internet auction sites has exceeded the retail price for the product, as Australian consumers attempt to secure the product. Local resellers describe the situation as a "drought".

Many resellers now have back orders in double figures, the report claims

"We've been flabbergasted by demand," Apple Australia marketing manager, Arno Lenior, said. The company is securing extra shipments to try to meet local demand, he said.