Apple gadgets are in great demand this Christmas, as US consumers shop for slighter, affordable and versatile electronics.

Whereas the Consumer Electronics Association forecasts flat fourth-quarter sales as compared with last year’s sales, market analysts report Apple stores have been the busiest among electronics retailers.

iPods, previously responsible for 40-50% of Apple’s 4th quarter earnings, are selling in large numbers.

Google reported that after Nintendo’s Wii games console and Wii Fit game, iPod touch is its most- searched-for product in its list.

On the other hand, the Lycos search engine has ‘iPod’ as its top search.

The bestseller list of Amazon electronics includes six iPods in its top 20, comprising all 3 editions of the touch. The most popular is the lowest-priced 8Gb edition, which still costs $230.

However, vice-president of Mobile Strategy at Jupitermedia Michael Gartenberg, says that this is not disheartening cash-strapped consumers.

“In a down economy, people can be willing to spend more on a premium product because they don’t want to make the mistake of buying something that doesn't meet their expectations or provide long-term value,” he says.

Apple has been promoting the touch’s capabilities afar music and video, with advertisements showing its features as a games console and a mini-computer.

It has derived a benefit from the 10,000 applications made for the iPhone and touch, with downloads from the company’s Apple Store now surpassing 300m.

Mr. Gartenberg says, “The iPod touch is being positioned as a product that can do multiple things. That gives it that strong value proposition of having lots of capabilities at one price point.”

The most recent edition of the touch can make calls using wi-fi, giving it potentialities closer to the iPhone.

Andy Hargreaves, analyst at Pacific Crest Securities, says it is expanding the market beyond the iPhone.

“It takes the market to kids - all of a sudden your 12-year-old wants one, and you can do it without paying the $70- a-month fee.”

Moreover, Apple may sell a cheaper iPhone at Wal-Mart stores by next year.

Analysts also report strong sales of the iPod nano and a new line of Macbooks, including a $999 version.

The new product declarations are usually made at the Macworld show during January but Apple cut expectations last week by saying Steve Jobs, chief executive, would not make his usual keynote speech and this would be the last time Apple exhibited at the show.