Apple Chip Deal Hints At New Device

SiliconValleyWatcher yesterday reported that Apple Computer has contracted to use multimedia chips from UK-based Alphamosaic in a future mobile device.

Alphamosaic was acquired by chipmaker Broadcom Corp. in September. The release announcing the transaction describes Alphamosaic's VC02 chip, which sounds like just the right thing to power a Wi-Fi-capable video- or game-oriented iPod."The VC02 can display video on 3.5-inch color LCDs and capture 8 megapixel images, making it ideal for watching TV, making videos, or taking studio-quality photos on a cell phone," the release says.

While it was widely reported last summer that Steve Jobs had rejected the idea of a video iPod, the success of the Sony PSP handheld gaming console can't have gone unnoticed at Apple. Then there's Sony's intention to offer its version of iTunes for video. Apple is going to have to offer some sort of video capability--movies or games--in future iPods. The only question is when.