Jefferies & Co. analyst: checks indicate Apple started video iPod production last month

“PortalPlayer Inc. shares posted a second day of gains Tuesday following a spate of upbeat signals for the chip maker’s growth prospects,” The Associated Press reports. “With demand surging for Apple’s newest player, the iPod Nano, analysts are optimistic that PortalPlayer will continue reaping benefits as a key supplier to Apple. In the second quarter, PortalPlayer swung a profit on nearly quadrupled revenue.

“In a research note published Monday, Thomas Weisel Partners analyst Jason Pflaum raised his profit and revenue estimates for the company, citing an earlier-than-planned worldwide Nano launch and strong adoption trends, as well as continued expansion in the fledgling media-player market,” AP reports. “Adam Benjamin, a Jefferies & Co. analyst, also said Monday that his checks indicate production started last month on a video iPod using PortalPlayer chips, and could be launched soon with strong sales expectations.”

Full article here.

Yesterday, UBS Investment Research Analyst Ben Reitzes noted in a research note to clients that an Apple handheld device capable of video playback could be in the works. In July, the Wall Street Journal – which correctly predicted Apple’s move from PowerPC to Intel-based Macs earlier this year – reported that Apple was in discussions with major content providers regarding licensing video content for a video-capable iPod due in fall 2005.

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Related articles:
UBS: Mac momentum continues building, Apple could sell 10 million iPods in holiday quarter – October 03, 2005
RUMOR: Apple to deliver new iPod, Power Mac, PowerBook models this month – October 03, 2005
Apple adds video to iPod trademark – August 03, 2005
Video iPod? Does The Wall Street Journal have a ‘Deep Throat’ inside Apple Computer? – July 25, 2005
Disney CEO Iger meets with Apple, Pixar CEO Steve Jobs to discuss distribution deal, video iPod – July 22, 2005
NY Post: signs point to Apple’s iTunes+iPod video plans – July 19, 2005
Report: Disney considers teaming with Apple to deliver iPod video content – July 19, 2005
More info about Apple’s reported iPod+iTunes video talks – July 18, 2005
WSJ: Apple in video iTunes talks, may unveil video iPod by September – July 18, 2005
Cringely: Apple working on HD movie download service and Video iPod – July 15, 2005
Report: Apple Computer to launch ‘Video iPod’ by 2006 – April 11, 2005

28 Comments

  1. Whoa – this is a major leak. There have been no confirmable rumors of a Video iPod and here Apple has it’s biggest iPod chip supplier spilling it to an analyst!

    Merry Christmas AAPL stock holders

    MDN word: where

  2. Apple can be enabling the ability to play the movies it sells on iTMS. That way it could be used as a test bed for that functionality. As with the photo feature, it could end up just being a neat trick but with little real use until the next major development.

  3. Nobody spilled anything. One analyst claims his checks show iPod video in production, but goes into absolutely no specifics.

    Hardly a collosal leak.

    My checks indicate the iPod is going to renamed Newton X2 and be available Thursday. The X2 will be made of platinum and be available in 250GB flash exclusively. All other iPod lines terminated.

    You heard it here first.

  4. The week of November 7th would be my guess – would give two weeks of major business before Thanksgiving.

    However, if Apple wanted to keep a sense of history, October 21st is iPod’s fourth birthday and falls on a Friday – I can imagine a US launch that week. and it would allow Apple to show it off in Europe a week later at Mac Expo in the UK for 27-29 October.

  5. Interesting. The WSJ “reported that Apple was in discussions with major content providers regarding licensing video content for a video-capable iPod due in fall 2005.”

    How many of these same content providers (or parent companies) also have record labels? Which record companies aren’t pushing Apple for an iTMS rate restructuring?

    We’ll find out soon enough!

  6. The X2 name (not the “Newton” part) is actually very close to the actual product name. I can only say that there were a few people nervously running around and making calls here in Cupertino before they were sure Cpt. Obvious simply made it up.

  7. This is more about Airport Express (X2) than it is about the xPod.

    The only problem I have with all this is that broadband connections still suck. It takes me what seems like forever just to download one of those new HD movie trailers @ Apple.com. I just don’t think I would be very happy downloading a whole movie…and I’m on a 1.5 Mbps cable modem connection.

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