New iPods to help Apple counter rivals

ITunes is a relatively small part of Apple's business, doing about $600 million in sales in the most recent quarter. But all those iPod fans have turned Apple into the third-largest music retailer in the United States, according to market research firm NPD.

"At this point the music stores and the services are driven by the music players, not the other way around. You don't start shopping at the iTunes music store and go out and buy an iPod, it's the other way around," Gartenberg said.