by , 3:25 PM EDT, March 31st, 2008

Piper Jaffray analyst Gene Munster, in a note to investors on Monday, estimated that Apple sold 1.6M Apple TVs in CY2007 and will sell 2.9M units in CY2008.

In a note to investors, obtained by iPO, Mr. Munster described the prospects of the Apple TV. It's a device that not only supports the Apple ecosystem, but has the potential to become a meaningful growth driver in its own right, Mr. Munster explained.

"The most obvious example is the AppleTV. Although Apple does not provide unit sales figures for the AppleTV, we estimate that Apple sold about 1.6m AppleTVs in CY07 and will sell about 2.9m units in CY08," Mr. Munster predicted. "Currently, Steve Jobs describes the AppleTV business as a 'hobby,' but we believe that Apple could make small changes to the device that would drive more material growth."

Recently, an Apple patent filing revealed the possibility that Apple could add a DVR capability to the device. In addition, Apple could also make small changes to the device that could offer live and recorded TV. The key is that, unlike TiVo, such an expanded device would augment the iTunes ecosystem and offer value added not available in other systems.

Mr. Munster predicted that Apple would add these features if Apple TV "Take 2" doesn't provide a big enough shot in the arm for sales.