SiliconValleyWatcher is reporting that Apple has contracted with a small British company to use a powerful video processing chip designed for mobile devices. The chip can perform 3D rendering, play video on a 3.5 inch color LCD, and capture 8 megapixel images. The speculation is that Apple is working on a video player iPod that is also a gaming device, 8 megapixel digital camera, and possibly a cell phone...
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