PortalPlayer losing big as Apple changes plans for iPod
PortalPlayer is the company, which develops the chips for most of the Apple iPods sold in the market. However, the company lost big time in the share market as their prices tumbled after a news report came out saying that Apple wonâ€™t be using their chips in the newer versions of Apple iPod.
The shares of PortalPlayer Inc. nearly halved on Thursday as market analysts believe that this might be their worst nightmares coming alive. As per incoming reports, as much as 70-90% of their revenues come from sales to Apple for their Apple iPod music players.
PortalPlayer Chief Executive Gary Johnson said in a statement: “We were clearly surprised with the change. We are shipping in today’s video iPod’s, (but) the visibility for us has become more clouded.”
The company develops chips for mobile devices for the high-speed transfer of compressed digital data between music players and computers. They are still hoping that their current generation chips would continue to be used by Apple in the coming days.