Analysts at UBS Investment Research predicts new products and a strong second quarter for Apple in notes released to clients yesterday.

Apple will see revenues climb 67 per cent year-on-year, UBS states - but warn that these estimates are "conservative", predicting in excess of $3.2 billion in the quarter. UBS holds a $50 per share price target for Apple.

The report also predicts new photo and video management features for iTunes and iPhoto. They suggest a digital media hub and an iTunes movie download service as possibilities, with latter features not expected until 2006.

"We believe Apple may be able to build upon its experience with iTunes to create a comparable service for motion content," UBS said.

"With Steve Jobs connections in entertainment, we doubt he will sit back and let this opportunity slip into the hands of a competitor."