Wednesday, July 19, 2006

Nvidia tops Broadcom for video iPod design win is reporting that "Nvidia (NVDA) has apparently won a major design win for Apple's (AAPL) next-generation video iPod product line — at the expense of Broadcom (BRCM)."

According to the article, "Apple's current video iPod line is said to use an MP3 processor from PortalPlayer (PLAY) and a multimedia chip from Broadcom. The chip designs have been up for grabs for the next-generation video iPod, which has been delayed and due out in the first half of 2007."

Satya Chillara at American Technology Research wrote in a research note that "Based on our analysis, we believe Nvidia is designed into the next-generation vPod socket at the expense of Broadcom. We believe the Nvidia chip adds 3D graphics functionality in addition to all of the existing features (such as H.264) that Broadcom supported with the existing vPod."

Chillara said, "We are upgrading [Nvidia] because of 1) the next generation vPod win; 2) the G80 graphics chip is on schedule to be released in CY Q3, 3) Sony PS3 royalties will kick in during the October quarter, and finally, 4) valuation is inexpensive."

He also wrote, "Broadcom "has lost the socket in the next-generation vPod to Nvidi. "We view this development as negative as the vPod program contributes revenue of [about $50-to-70 million per quarter]."