Piper Jaffray disputes report of weak iTunes sales

Digital music sales surged at Apple Computer Inc.'s iTunes service over the first nine months of 2006, Piper Jaffray said on Wednesday, contradicting a report that sales collapsed in the first half.

Apple shares fell 3 percent on Tuesday after Forrester Research reported a 65 percent drop in monthly iTunes revenue in the first six months of the year, based on a survey of North American consumers.