Apple Dumps PortalPlayer Chip

Quash writes to mention a BusinessWeek article about Apple's decision to not use the PortalPlayer chip in a future version of the iPod nano. From the article: "PortalPlayer stock promptly shed $9.46, or nearly 42% of its value, and more than $220 million in market value. Apple generally doesn't discuss future products, nor its manufacturing or component supply strategies. It had no comment on the matter. But theories about who may have been the beneficiary of PortalPlayer's misfortune are abounding."

Comments

Re:Massive Drop In iPod Demand

[monoqlith]

Ok, now you're simply making things up. From this article regarding Apple's most recent quarterly earnings reports:

"Apple said it shipped 1,112,000 Mac computers and more than 8.5 million iPods music players during the quarter. The iPod shipments represented a 61 percent increase over the same period last year."

Therefore what you have just said is patently incorrect. QED.

Re:Massive Drop In iPod Demand

[Jerry Rivers]

"...as the massive drop in iPod sales shows."

For more information on this "massive drop in iPod sales" please read: http://www.ipodobserver.com/story/26405

Highlights from the above story:

  iPod shipments are up 61 percent compared to last year, and the company has now sold over 50 million units.

  The iPod market share is up, too, accounting for 78 percent of the portable music players sold. In December 2005, that number was at 71 percent

  Outside of the United States, the iPod is the top-selling MP3 player in the United Kingdom, Japan, Australia, and Canada.

Despite strong iPod sales, Apple sees room for major growth in the MP3 player market. Based on sales of other consumer electronic devices, Mr. Oppenheimer noted, "The MP3 player market has a lot of room for growth. According to Forester research, U.S. household MP3 player penetration was less than one quarter that of digital cameras as of the end of 2005."