PortalPlayer Planning Wireless... Wireless iPod?

A recent analyst note on PortalPlayer has triggered speculation about Apple's involvement in developing wireless iPods.

PortalPlayer makes system-on-chip semiconductors used in many portable media playing devices, including the iPod. In fact, 90% of PortalPlayer's revenue in the 3rd Quarter of 2005 is estimated to come from the iPod.

PortalPlayer indicated that it wants to aquire a small company with a wireless technology portfolio and is "dedicating 2006 to building out wireless capabilities".

Rumors/speculation of a wireless iPod is not new, with previous comments by Motorola execs as well as Apple patent images depicting a wireless iPod.

The last time Steve Jobs spoke on the subject, he claimed that Bluetooth for the iPod isn't a good option due to sound quality and headphone recharging issues. As well, Apple is cautious in adding new features:

We are very careful about what features we add because we can't take them away