Apple Inc (AAPL)

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11:44 AAPL Apple Computer: Retailers see strong Mac demand, little excitement over Zune - AppleInsider (84.58 +0.23) -Update-

AppleInsider reports checks with retailers in the Northeast indicate there is strong demand for Apple Computer's Intel Mac line leading into the holiday shopping season, with sales of the its iPod digital music players also gaining traction, analysts for UBS Investment Research said Tuesday. Meanwhile, the firm's inquiries turned up "little excitement" over Microsoft's (MSFT) Zune digital music player, which makes its mkt debut today.

"Our checks for Apple continue to be positive for MacBooks, which could lend upside potential to our estimates for fiscal 1Q07 (ends December) and bodes well for continued share gains," analyst Ben Reitzes wrote in his report to clients, first distributed on Monday. "While Apple continues to dominate the MP3 player market in terms of share, our checks indicate that the MP3 market is a bit more subdued than last year due to general market maturation."

The analysts believes retailers are not expecting much in terms of initial demand for Zune, as is evident from their lack of promotional material around the player and their hidden displays. "We are not expecting Zune to have a meaningful impact on iPod sales," he said.