In addition to raising iPod sales and first quarter Apple earnings estimates, Merrill Lynch analyst Steven Milunovich also said that demand is strong for the company’s iMac G5. In a research note to clients, Milunovich raised iMac numbers slightly from 240,000 units to 250,000 in the December quarter and from 874,000 to 900,000 for the year. He also notes that Best Buy is now selling the iMac G5 on its Web site. Milunovich also stated that “The major risk in the retail store strategy is past.” He pointed out that sales per square foot are now comparable to Circuit City though behind industry-leading Best Buy.