American Technology Research analyst Shaw Wu believes Apple will release a video-capable iPod in October.

Portal Player this week revealed net income of $6.3 million on $44.6 million in revenue.

Discussing these results, Wu wrote: "We believe new iPods including colour iPod minis, higher capacity flash, and a video-capable iPod will not likely ship until the October timeframe in the December quarter."

Wu also expects Apple will ship 7.1 million iPods in its current quarter, 3.1 million of which will be flash memory-based iPod shuffles.

He also "believes" Portal Player to have "secured the design win in a new 2GB iPod mini using flash". He also predicts Apple will dump its 4Gb iPod mini.

Announcing Portal Player's results, company president and CEO Gary Johnson said: "We have completed the design win activity for our customers' exciting new models intended to ship in the second half of 2005."