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Synaptics Loses, PortalPlayer Wins With iPod nano Release
Wednesday, September 7th, 2005 at 3:00 PM - by Brad Cook
Synaptics, which has long supplied components used in Apple's iPods, has no connection to the iPod nano, while PortalPlayer apparently won the opportunity to supply the new MP3 player's processor chips. Matt Andrejczak's article for MarketWatch reports that Synaptics CFO Russ Knittel told investors that his company's scroll wheel technology wasn't used in the iPod nano.
Mr. Knittel's comments came during the Silicon Valley Bank Conference. Mr. Andrejczak then spoke with Wedbush Morgan Securities analyst Craig Berger, who speculated that PortalPlayer is supplying the main processor chips that drive the iPod nano. Cypress Semiconductor is apparently supplying the click wheels, according to speculation reported by Mr. Andrejczak.
However, Synaptics still supplies the technology used in Apple's full-size iPods. Seagate and Hitachi were supplying the micro hard drives used in the old iPod minis. Now that it has been replaced by the flash-based iPod nano, however, those companies' revenues are also at risk.
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