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Prepare for speculation a-go-go: Apple just licensed a chipset that is capable of not only music and video, but 3D graphics and image capturing with resolutions up to 8-megapixel. Silicon Valley Watcher is reporting that Apple has contracted to use a chipset from UK company Alphamosaic. And not only is the chipset powerful, it can be integrated with chips from Alphamosaic's parent company Broadcom to provide wireless communication, from cell phones to Bluetooth to Wi-Fi.

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Now as much fun as it is to wonder if Apple is making a video/gaming/cellphone/camera/music device, you also have to realize that Apple often doesn't exploit the full power of the chipsets it licenses (the chipset that powers modern iPods is capable of video, for instance). So while Apple could be designing the ultimate convergence device (or Newton II), they could also just be adding video or 3D menus to the new generation of iPod. What we do know is we won't see a product using this hardware until at least next year, so we've got lots of time to wonder.

Who knew that the April Fool's gPod hoax [pictured] would be so quickly probable?

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Scoop! Brit chip designers score coup as Apple picks chips for next gen mobile multimedia device...the m-Pod? [SiliconValleyWatcher]