ABI based this claim on Apple's latest earning statements which exceeded most analysts' expectations in terms of the continuing depth of iPod pentration. Additionally, iPod accessory sales, from Apple and other companies such as Bose and JVC are also booming – with a proliferation of high quality home docking station systems.

Research director Vamsi Sistla says, "The battle for portable devices has already been won by iPod (unless Microsoft's strategy for its Zune platform succeeds) but in the home and mobile markets, the prize is still up for grabs. iTunes could be a ‘Trojan Horse' through which Apple can enter the home market sooner than the competition."

According to ABI, the key to this opportunity is consumers' growing interest in digital media connectivity in the home. "I think we will soon see more line-powered consumer audio devices—high-end audio devices with AV receivers, and multi-room audio systems—adding support for iTunes to their current support for iPod," Sistla suggests.

Computers around the world are filled with music, speech and video, often organized by iTunes and over a billion files have been downloaded from iTunes so far. Leveraging this content, which users have already paid for and want to hear on a good home audio system or watch on a digital-ready TV, creates a huge opening for consumer electronics vendors, claims ABI.

That could happen through a standard personal computer. Or, it could be implemented through a dedicated "media center" PC. Apple offers this already with the combination of its Mac Mini (now Intel-based) and Front Row networking software; and now, Sistla affirms, "The field is wide open for PC manufacturers and other vendors of home CE systems to capitalize on what should be a large and dynamic market."