Apple is preparing to launch a range of budget laptops next month, according to the website that was sued by the computer company earlier this year for leaking its plans for another line of low-cost machines.

It is thought the laptop, which will be powered by microchips from Intel - a first for Apple - will be designed to take on cheaper rivals such as those produced by Dell, Hewlett-Packard and Sony.

The Think Secret site, which correctly anticipted the release of the Mac Mini in January and was promptly slapped with a writ for revealing trade secrets, said: "Apple is planning to release its first entry-level iBook laptops with Intel processors next January ... highly reliable sources have confirmed".

The cheapest iBook costs £700 in the UK. Think Secret suggests that American prices could be lowered by around $200. That would suggest the new Apple laptop retailing at around £600 - but Apple has been reluctant to pass on its budget prices to British buyers in the past.

Apple is notoriously secretive around product launches, both to build a sense of anticipation around its famously lavish launch events and to avoid being stuck with unwanted stocks of older products as consumers hold out for the next hit gadget.

However, Wall Street analysts have also predicted the move to Intel chips, which Citigroup this week said it could drive up Apple's profits. Apple has already enjoyed a massive turnaround in its fortunes thanks to the iPod, its iconic music player. It is thought to be keen to extend its appeal in the consumer market at a time when computers look set to rival stereos and televisions as the centrepiece of home entertainment systems.

"We are becoming more convinced that Apple will introduce its first Intel-based PowerBook at Macworld San Francisco," Richard Gardner, a Citigroup analyst, said. The MacWorld event is due to take place from January 9 to 13.

Mr Gardner raised his target for Apple shares to $71 from $51, and also raised earnings forecasts for the next two years.

For the current quarter, Mr Gardner raised his revenue estimate to $5.5 billion from from $4.8 billion and his earnings-per share forecast to 60 cents from 47 cents. He also raised his 2006 revenue forecast to $20.4 billion from $17.6 billion.

He added that a quick introduction of Intel-powered machines would minimise the risk that Apple would end up with a buildup of its current line of non-Intel laptops

Shares in Apple rose to an all-time high on Monday on upbeat comments from several Wall Street analysts after a strong start to pre-Christmas sales of iPods.

The analysts’ views followed recent reports for Amazon.com that said iPods claimed the second and third spots on the online retailer's list of top-selling consumer electronics between November 1 and 22.

Gene Munster, of Piper Jaffray, said Apple’s strength in the American market had continued into last weekend - the post-Thanksgiving holiday shopping weekend, which is usually the busiest shopping period of the year in the US. Mr Munster raised his price target on Apple to $79, and, in a research note, said that "in addition to new and updated iPods, 2006 will be a significant year for the Macline" of personal computers.

He expects Apple’s transition to using microprocesors from Intel for its Mac computers will lead to greater product demand next year.

Chris Whitmore of Deutsche Bank raised his price target on Apple to $78 a share. He said that based on checks of supply chains and retail outlets, he expects more of a shift in sales toward the more-expensive video iPod.

JP Morgan said that its own research showed the iPod was the strongest-selling consumer electronics products in US retail stores last week. Demand was so strong that many of Apple’s retail partners sold out of thevideo iPod and iPod Nano devices by early Friday morning.

JP Morgan estimates that Apple will sell 10.8 million iPods in the current calendar quarter, and that those estimates may prove to be conservative by the time the final sales are tallied.

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