Wireless-enabled iPods may be just around the corner, a recent report claims.

Apple iPod supplier PortalPlayer plans to acquire a small private wireless-technology firm and has already said it is dedicating 2006 to building wireless capabilities.

This suggests Apple is considering adding such features to future iPod models, claimed Citigroup analyst Glen Yeung. The analyst reckons 90 per cent of PortalPlayer's Q3 revenue was driven by iPod sales.

On the strength of his notion, Yeung raised his estimates on PortalPlayer stock, sparking a spike in its share value, Reuters reports. PortalPlayer shares closed at $27.10 last night.

Earlier this week, PortalPlayer quietly revealed that it has licensed Sun Microsystems' Java Platform, Micro Edition (Java ME) technologies for inclusion "within its personal media player platforms".

It added that these are "expected to be released in the first half of 2006".

The deal means PortalPlayer customers - potentially including Apple - will be able to "add Java applications such as games and productivity tools to next-generation personal media players," the company said.

Michael Maia, vice president of sales and marketing at PortalPlayer said: "PortalPlayer is now leveraging the talents of the Java community to accelerate the delivery of exciting applications for next-generation devices."