Nvidia May Have Taken iPod Business From Broadcom

It appears that Nvidia (NVDA) has beaten Broadcom (BRCM) in the battle to provide video chipsets for the next generation video iPod, due out in the first half of 2007. The current video iPod uses a multimedia chip from Broadcom, however the design for the next gen version has been up for grabs for some time.

'Based on our analysis, we believe Nvidia is designed into the next-generation vPod socket at the expense of Broadcom' said Satya Chillara, an analyst with American Technology Research Inc. (source)

In addition to all of the existing video features such as H.264, Nvidia chips are expected to add 3D graphics capabilities, important for gaming applications. The loss of the socket to Nvidia will likely have a significant negative impact on Broadcom, which was estimated to have been generating at least $50mm of revenue per quarter from the Apple deal.

Supplier shuffling has occurred on other fronts as well. Samsung Electronics recently accounced a design win for the next-generation iPod Nano, beating existing supplier PortalPlayer (PLAY) in the process.

Disclosure: Author has no position in stocks mentioned

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