Merrill Lynch analyst Steven Milunovich said today that he expects Apple to ship 1 million iPod shuffles and about 3 million iPods this quarter, for a total of 4 million units. “Updating the iPod mini should help iPod units decline only 35 percent sequentially from 4.6 million to 3 million,” the analyst wrote in a research note to clients. Milunovich also noted that today’s price reduction on the 60GB iPod photo suggests that “demand has been less than spectacular since its October debut.”
