For Portalplayer, an iPhone future

PortalPlayer, the San Jose, Calif.-based chip company that is in the process of being acquired by Nvidia, might be back in favor at Apple.

A research report out of brokerage firm of Friedman, Billings, Ramsey & Co. speculates that PortalPlayer is going to be supplying an applications processor for the forthcoming Apple iPhone product, a deal that is reportedly worth millions.

In addition, it is rumored that Nvidia has seen a new graphics chip designed into the future generations of iPod Video, reports the EE Times. The combined Nvidia-PortalPlayer could get about $280 million in revenue from Apple, the analysts postulate.

The projected $280 million in combined Nvidia-PortalPlayer music player includes $150 million from the iPhone, $100 million from the new video iPod, and $30 million from non-Apple MP3 players, FBR said.

The company’s chips were not included in the next generation iPod Nano, resulting in a sharp decline in the stock of the company. PortalPlayer also is one of the chips inside Microsoft’s Zune line of music players.

Other analysts have said that that Broadcom could be the big supplier to iPhone, though it is quite possible that Broadcom could be selling the cellular radio and related chips to Apple, and PortalPlayer-Nvidia the applications processors and video related silicon.


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