Feeds

Samsung 'gaffe' sends Apple order to rival chip maker

Analyst allegations

The Power of One Brief: Top reasons to choose HP BladeSystem

Music chip maker SigmaTel is reported to have won the contract to supply Apple with audio controllers for the second-generation iPod Shuffle because Samsung went public on the Mac maker's iPod Nano plans.

The claim comes from Los Angeles-based Wedbush Morgan Securities analyst Craig Berger, according to a variety of reports today. Berger told clients he believed Samsung's design win for the chip that will power the next version of the Nano would have been extended to an updated Shuffle had a Samsung executive not spilled the beans about the new Nano ahead of time.

“We have increased confidence that SigmaTel will continue supplying the MP3 processor into the Apple Shuffle in H2 06, after a Samsung executive commented publicly that Samsung supplanted PortalPlayer in the next-generation iPod Nano,” Berger told investors.

“It is not surprising that Apple would ‘punish’ Samsung for commenting publicly about its position within the iPod Nano follow-on, and we believe that SigmaTel is likely to be the resulting beneficiary of the Samsung executive’s gaffe,” he said.

In April 2006, the head of technical marketing at the US division of Samsung's chip making arm, Jon Kang, told reporters: "I knew PortalPlayer would take a dive... I knew that we would win this design. We’ve been working with Apple a long time. It’s a huge win for us."

Berger said he reckons SigmaTel will ship 7.4m Shuffle chips of one type or another this year - handy when the company faces stiff competition in the sector. If NAND Flash prices continue to fall, Apple may cut Shuffle prices, he suggested. If so, that may boost demand for the iPod, in turn increasing SigmaTel's shipments. ®

Using blade systems to cut costs and sharpen efficiencies

More from The Register

next story
Report: American tech firms charge Britons a thumping nationality tax
Without representation, too. Time for a Boston (Lincs) Macbook Party?
Child diagnosed as allergic to iPad
Apple's fondleslab is the tablet dermatitis sufferers won't want to take
Microsoft takes on Chromebook with low-cost Windows laptops
Redmond's chief salesman: We're taking 'hard' decisions
For Lenovo US, 8-inch Windows tablets are DEAD – long live 8-inch Windows tablets
Reports it's killing off smaller slabs are greatly exaggerated
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
Seventh-gen SPARC silicon will accelerate Oracle databases
Uncle Larry's mutually-optimised stack to become clearer in August
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.