by , 9:55 AM EST, December 19th, 2005

Piper Jaffray analysts Gene Munster and Michael Olson have raised their estimate of 9 million iPods shipped for the December quarter to 11 million. Despite high demand, and low inventories at third-party retailers, supplies at Apple's online and retail stores should provide quantities high enough to hit the 11 million mark.

Piper now expects iPod sales growth of 79 percent compared to the same quarter last year, and 124 percent, year over year. The December '05 contribution estimate, however, is being lowered by 45 percent.

Mr. Munster and Mr. Olson raised their estimated earning per share from US$0.50 to $0.52 on earnings of $4.70 billion for the December quarter. Annual earnings for 2006 are now expected to be $1.77 on $17.91 billion, up from $1.75 on $17.62 billion.

Piper has raised its target price for Apple to $80, up from $79.

Apple's stock is currently trading at $71.78, up 0.67 (0.94%).