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Apple (NASDAQ:AAPL) investors have lately been worked up over the introduction of iPhone, which is yet another great product from Apple and expected to sell 10 million units in 2008. It sold 270,000 in the first two days of its introduction, which makes the 730,000 they are guiding to for the next three months seem conservative laughably low.

But with all the focus on iPhone, everyone seems to forget about the iPod. As I noted earlier, 21% growth for iPods was also borderline spectacular for a product many have all but forgotten and if anything expected to be cannibalized by iPhone. Oh, and who needs 10 million units in a year when the outdated, cannibalized iPod sold nearly that many in a quarter? Imagine what might happen if they actually came out with a new model.

You might not have to stretch your imagination for long. Think Secret thinks there is an iPod update on the horizon

Apple’s full-size iPod is being primed for an update that could arrive as early as the first-half of August, sources report. The revision will feature neither a touch-screen nor will run a scaled down version of Mac OS X like the iPhone, however—those updates are not scheduled until 2008.

Apple has been an amazing stock and the company continues to produce amazing products. With the stock performing as it has it is easy to see how investors may feel nervous. But it is also easy to see that with global handset units topping a billion per year, Apple can grow for a long time before gaining on even the meager 3% share it holds in the PC market.

AAPL 1-yr chart:

AAPL 1-yr chart

Source: Forget the iPhone! Apple Investors Should Be Focused On Spectacular iPod Growth