Apple Inc (AAPL)

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10:11 AAPL Apple Computer: Piper Jaffray disputes report of weak iTunes sales - Reuters.com (87.59 +1.45) -Update-

Reuters.com reports digital music sales surged at Apple Computer's iTunes service over the first nine months of 2006, Piper Jaffray said on Wednesday, contradicting a report that sales collapsed in the first half.

Apple shares fell 3% on Tuesday after Forrester Research reported a 65% drop in monthly iTunes rev in the first six months of the year, based on a survey of North American consumers. But Piper Jaffray analyst Gene Munster wrote in a research report that the number of songs sold per week on iTunes had risen 78% in the first nine months of 2006 compared with the same period in 2005.

"Contrary to recent reports suggesting sales on iTunes are declining rapidly, our analysis of Apple company data ... shows strong growth (year over year)," Munster wrote. Piper Jaffray said songs sold by iTunes totaled 695 mln from January through September, amounting to about 18.5 mln per week.