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News
Chip Maker Wants Some of Apple’s Pie
Monday, February 13th, 2006 at 2:00 PM - by Jeff Gamet
SigmaTel Inc. provides the chips for the iPod shuffle, and is one of the largest MP3 player chip manufacturers in the world, but what it really wants is more of the iPod product line. A Reuters article claims that the chip manufacturer is hoping it can convince Apple to use its chips in the nano and other iPods by the second half of 2007.
SigmaTel is betting that competing MP3 players will come to market that are better than the iPod nano, pulling market share away from Apple. If that happens, they reckon, Apple will be more likely to send more of its chip orders back to Sigmatel instead of PortalPlayer.
Currently, Apple uses chips from PortalPlayer in all of its iPod models except for the shuffle. Standardizing on PortalPlayer's chips gives Apple the ability to more easily add new features, like wireless connectivity, in the future. SigmaTel, on the other hand, says that its chips offer more features that PortalPlayer's.
SigmaTel's CEO, Ron Edgerton, thinks that Sony and Creative will ship players that have longer battery life and video features that will woo customers away from Apple. "And if that takes market share from Apple," he said, "then I think they will be more likely to come to us."
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