PortalPlayer has been a major component supplier for the Apple iPod from the start. The company, however, has had a major setback today when it was announced that Apple will be switching from PortalPlayer to another supplier for chips in some of its iPod product line. PortalPlayers next media processor chip will not be used in Apple's new mid-range and high-end flash-based iPods.

The company does believe "that the [current chip] will continue to be used in other members of the iPod family. "

PortalPlayer generates about 90% of their sales from Apple's iPod alone.