According to Wedbush Morgan Securities analyst Craig Berger (reported by EE Times), Apple's next-generation iPod Shuffle will use a SigmaTel media processor chip rather than the previously rumored (also by EE Times) Samsung-Apple "PortalPlayer-killer" chip.
Samsung and PortalPlayer were among other competitors for the contract, and according to the analyst, Samsung may have originally won the contract. However, when Samsung announced last month that it had secured contracts with Apple for future flash iPods, Berger believes Apple may have had a change of heart.
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 executives gaffe, [Berger] added.
Currently, the 5G and iPod Nano use PortalPlayer chips and the Shuffle uses SigmaTel chips. As rumor stands currently, next-gen Shuffles will use SigmaTel chips, Nanos will use Samsung chips. Currently, the 6G iPod contract is unknown, and "true" video iPod contract is rumored to be still up in the air. Of note, a recent uncorroborated page 2 rumor indicated that the Shuffle was in line to be discontinued.
