The IPhone Suppliers: another way to play the gadget

Well it looks like the periphery companies that might be making IPhone parts are seeing a little lift in these past few trading days.

Wedbush Morgan Securities analyst Craig Berger in a client note said
Broadcom Corp. is rumored to supply the touch screen controller chip for the
iPhone, which could add 2 cents to 7 cents per share to 2007 earnings. The
company could also be providing the AlphaMosaic video processor for the new
gadget, as it does for current iPods, but is not probably not providing the
item's Bluetooth enabler, added Berger.

However, Broadcom has sold off 2.8% today after it went up 4% yesterday. Maybe the big boys are running the stock down in order to buy back heavy. Or it could just be some profit taking now that analysts have run the numbers and aren't flying blind. I found this interesting though:

The analyst noted many people believe Marvell Technology Group Ltd.
is supplying the iPhone Wi-Fi chip. Sales related to the device could boost
Marvell's 2007 earnings by 2 cents per share, or $36 million in sales, he
added. Marvell shares added $1.05, or 5.3 percent, to $20.78 on the
Nasdaq.

I wonder if that Wi-Fi chip will let the IPhone share music and files through a short range ad hoc type network? It would be kind of like the Zune's Share-through-the-air feature but with a phone attached. The IPhone could actually be that true digital convergence device combining all of a persons multi-media apps in one easy to access place.

It certainly would be a whole new way of selling lots of videos, music, ringtones, games, etc. through that Ipod store at a buck a toss. If this is the case then Apple at $110+ a share might be in order.