The owner of an iPod repair shop is being sued by Apple for misuse of the coveted iPod trademark -- and of allegedly manipulating Apple to both send him replacement units for free as well as tricking the electronics giant into repairing out-of-warranty iPods.

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Analysts at Piper Jaffray see iPod shipments on the rise and suggests Apple is bucking fears of a continued downturn. Also, Sybase is readying a native iPhone app, AT&T may offer iPhone insurance, and two carriers in Japan and Korea may launch the iPhone at the same time.

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Though growth in Apple's iPod unit shipments has been declining since the end of 2006, price cuts like those applied to the iPod shuffle on Tuesday and cheaper Internet-capable models down the line should help the company reverse course and maintain a steady rate of growth through 2009, says one Wall Street analyst.

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Apple on Tuesday slashed the price of its 1GB clip-on iPod shuffle music player from $79 to $49 and introduced a new 2GB model for just $69.

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