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2/15/05 at 2:12pm
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An article in CNN/Money by Paul La Monica looks at a handful of Apple's iPod component suppliers who have cashed in on the iPod's recent success, posing the question of whether it's still worth buying into any of these companies. The article focuses on Synaptics (Click-Wheel), Audible (downloadable content), Sigmatel (iPod shuffle controller chip), and Portable Player (processors for the iPod and iPod mini). Of the four, Audible has seen the largest gains, with its stock surging 145 percent in the past year. But its shares are trading at about 70 times 2005 earnings estimates, the report notes. Synaptics, whose shares were up 36 percent of the past year, has recently been taken for a wild ride due to concerns Apple may develop its own click-wheel interface. Its stock is down 24 percent in recent weeks. Meanwhile, after examining the two chip companies, La Monica believes SigmaTel is 'probably the better bet.'
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