MacRumors.com

EETimes is reporting word from analyst Chris Caso that PortalPlayer may have scored a big win in Apple's rumored phone, receiving the contract for the applications processor design.

PortalPlayer was dumped from Apple's iPod Nano line in April 2006, and has since been bought by NVidia, who themselves are rumored to have scored the multimedia chip contract for the forthcoming "true" video iPod. PortalPlayer still supplies the audio processor for Apple's full-sized iPod (iPod with video).

Apple's phone has recently been rumored to be in production overseas, with initial deliveries starting in February 2007.