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Apple’s Secret Product Transition Nothing More than Video Encoding Chips?

Silicon Alley Insider reports that a “tipster” has informed them about Apple’s upcoming secret product transition.

From a tipster: “I happen to know that the product transition referred to in Apple’s recent conference call was referring to quicktime encoding/decoding chips built into their products.”

The addition of these chips in Apple’s products would take care of most of the heavy-lifting when it comes to processing video, understandably the H.264 codec that Apple is known for. “That could be used in any number of cirumstances, such as a live, hi-def iChat AV video chat, watching HD video off the Web, or faster encoding HD video for distribution,” Frommer explains for SAI.

Although Apple does stand behind their (not-so-ubiquitous) video codec, a fairly small inclusion such as this (no matter how great the results), wouldn’t effect Apple’s margins so much that they announce an expected future decrease in revenue at the Q3 Financial Earnings Conference Call.

More likely, this secret product transition refers to a revamped notebook line, or a major overhaul to a facet/area of Apple’s business.

Although Silicon Alley’s tipster may be entirely right about the addition of these chips into Apple’s products, considering them a “secret product transition” seems like a bit much.

Additionally, speculation about an iSight upgrade to an iSight HD continues.

[via Alley Insider]