iPod chipmaker to go public

Posted:
in iPod + iTunes + AppleTV edited January 2014
PortalPlayer, the Silicon Valley company whose chip powers the iPod, is looking to play its tune for Wall Street, according to CNet's News.com.



The company took the first step toward an initial public offering last week, filing registration papers with the Securities and Exchange Commission. Although it did not say how many shares it expects to sell, Portable Player hopes to raise over $75 million in the offering.



According to CNet, a major challenge for the company in going public is that its fortunes are largely tied to Apple's iPod digital music player.



"Although PortalPlayer's software and chips go in players from companies such as Aiwa, Philips, Rio and Samsung, the overwhelming majority of its business comes from the iPod, with roughly 85 percent of last year's sales stemming from the iPod."



PortalPlayer's staff of 134 designs but does not actually manufacture its chips. In the filing, PortalPlayer claims that it is actively trying to diversify its business.

Comments

  • Reply 1 of 2
    tednditedndi Posts: 1,921member
    Now would be a good chance for apple to take a larger stake in the business.



    Considering that the ipod is driving profits for apple it would be good business to acquire the main supplier of the chips and the OS.
  • Reply 2 of 2
    rbrrbr Posts: 631member
    Quote:

    Originally posted by TednDi

    Now would be a good chance for apple to take a larger stake in the business.



    Considering that the ipod is driving profits for apple it would be good business to acquire the main supplier of the chips and the OS.




    There was a news article that indicated only 5% of U.S. households have any iPod-like device and that Apple, while in the lead at the moment, could be overtaken. That is a real growth potential market. Apple will have to stay out in front of the development to maintain their lead as the market grows.



    Apple would do well to take some of that money that is sitting around in the bank and buy this outfit.
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