// startup autopsy
PortalPlayer
The iPod's hidden engine, abandoned when Apple moved on
platform dependencyAcqui-hire
Fatal mistake: PortalPlayer allowed Apple to account for over 90% of its revenue without diversifying its customer base, making Apple's chip decision a death sentence.
Key Events Timeline
FOUNDING
PortalPlayer founded to develop multimedia processor chips for portable consumer electronics devices.
FUNDING
Secures funding and wins Apple design contract to supply application processors for the original iPod.
PRODUCT LAUNCH
PortalPlayer chips power the iPod Mini and fourth-generation iPod, making the company the dominant portable media chip supplier.
LAYOFF
Apple announces shift to Samsung-designed chips for newer iPod models; PortalPlayer stock crashes and layoffs begin as revenue outlook collapses.
SHUTDOWN
NVIDIA acquires PortalPlayer for its media processor IP and engineering team, ending the company as an independent entity.
MEDIA_MENTION
# Nvidia snaps up PortalPlayer for a steal; time to chase the iPod? Less than a year ago, the stock of iPod chip supplier PortalPlayer (PLAY) was trading at more than $31 per share, giving the company a market value of about $800 million. Apparently Wall Street is confident the deal will go through: