PortalPlayer Preface Chipset Gaining Recognition

PortalPlayer (PLAY) continues to follow a trajectory of diversification from it’s core Apple (AAPL) iPod business. Portalplayer currently derives 90% of it’s revenue from Apple iPod and Nano hardware sales and is working on a new chip in partnership with Microsoft (MSFT) called Preface. Preface is the brain around which Microsoft Sideshow is built. We’ve written about the potential for the Preface chipset, and there are a few recent developments that reinforce our opinions here that I thought were worth sharing.

Most people saw the Sideshow announcement as constrained to laptop lids- we continue to maintain that Sideshow (and the Preface c