This was recorded during the sessions for the McCartney II album, where Paul once again retreated to his farm and laid down all the tracks himself. This time he was experimenting with the new electropop movement, which explains the weird boinging sound throughout the song. This sound was created by an early synthesizer called a Sequential Circuits Prophet-5, which was also used on Kim Carnes' "Bette Davis Eyes" and the Doobie Brothers' "What a Fool Believes."
The Beatles never had an official Christmas release, although they distributed "Christmas Time Is Here Again" to their fan club in 1967. As solo artists, however, all 4 members released Christmas songs. This one and John Lennon's "Happy Xmas (War Is Over)" have endured and continue to get airplay in the holiday season.
De La Soul sampled this for their song "Simply Havin'" on their album AOI: Bionix.
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