BOSTON (Thomson Financial) - BMO Capital Markets weighed in ahead of Apple Inc.'s quarterly report Monday, expressing concerns about the company's ability to meet high investor expectations for gross margins.

Apple is scheduled to report its results for the three months ended Sept. 30 after the closing bell. The current mean estimate of analysts polled by Thomson Financial is for a profit of 86 cents a share on revenue of $6.07 billion.

"The most significant issue near-term, in our view, is gross margin," the firm told clients. BMO's forecast of 31.7% is below some of the more enthusiastic views on Wall Street. "We think price cuts in iMacs and iPod nanos will limit Apple's ability to meet more bullish expectations of higher than 34% gross margins. BMO Capital Markets is looking for a profit of 85 cents a share, a penny below consensus, on revenue of $6.1 billion in the third quarter.

OtterBox rolls out new iPod, iPhone cases

OtterBox today rolled out two new series of cases for Apple's iPhone, iPod touch, iPod classic, and iPod nano. The company's Defender series includes slim, rugged cases designed to keep Apple gadgets out of harms way without compromising style. The cases provide complete interaction via polycarbonate shells that snap together to safeguard the device within, while membranes protect the screen of every device as well as the iPod's click-wheel. A silicone skin encompasses the entire case as well, providing additional protection from drops and bumps. Defender cases are priced at for Apple's iPods, while Armor cases are priced at $50 for iPod touch and iPod classic vs. $40 for third-generation iPod nano (pricing for iPhone cases was unavailable).

A second set of cases, dubbed the Armor series, are designed to safeguard iPhones as well as iPods against rain and dirt.

Zune trumps iPod as Amazon.com's top seller

Microsoft's Zune portable media player is currently Amazon.com's top-selling digital music device, usurping Apple's iPod for the highest rank in the "Electronics" category. The 30GB Zune -- which Microsoft has heavily discounted to a purchase price of $134 -- dethroned Apple's 4GB iPod nano this morning in Amazon.com's list of top-selling MP3 players. Apple's 4GB iPod nano took second place, while the Cupertino-based company's 80GB iPod classic holds the no. 3 spot.

Microsoft's recently-introduced 80GB Zune player is labeled as temporarily out of stock with no future shipping date on Amazon.com, which coincides with the Redmond-based company's own statement that the 80GB Zune will be unavailable until early December. Earlier this month Microsoft announced plans to improve on the basic formula of the iPod's customization for its new Zune players.

iPod News: TUNEWEAR Stereo Sound Recorder Now Shipping

TUNEWEAR(TM) announces the availability of TUNEWEAR Stereo Sound Recorder for iPod, a stereo voice and music recorder for iPod classic, iPod 5G, iPod nano 2G and iPod nano 3G. The suggested retail price is US$49.95.TUNEWEAR Stereo Sound Recorder for iPod adds a stereo microphone and works using the built-in recording function already included in iPod.�TUNEWEAR Stereo Sound Recorder for iPod is perfect for recording business meetings, school lectures, or your own rock band. There are two built-in high quality omni-directional microphones which record stereo sound directly to your iPod. Select either mono or CD-quality stereo quality, depending on your needs.�The audio line-in is compatible with external microphones having 3.5mm plugs. It also accepts line-in cables for recording from cassette decks or other analog equipment.