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Apple changes iPod Processor supplier

When Apple announced that it sold 8.5 million iPods in its fiscal second quarter, at least one of their business partners was not looking excited.

Portable Player, a veteran iPod chip supplier to Apple, today announed that their chips would no longer power the Apple iPod Nano. Apple may either choose processors Samsung, SigmaTel, Actions, or LSI Logic.

PortablePlayer counted on Apple for 90% to 95% of its sales. With Apple dumping PortalPlayer [PLAY], the company may have learned an important lesson - Don't put all your eggs in one basket.