It's a very small amount of their total revenue....but the psychological driver for the stock. Before the iPod took off, this was a PIG. If the rumors are true that the future iPod won't use SYNA, this will not rally no matter how good earnings are.
Don't know where you're getting your info. The SG Cowen report on 10/22/04 stated that the iPod was over 70% of their new market revenue. In addition - if you bother to check out Synas web site - you would see they have announced 3 new design wins - 2 are new MP3 players from Olympus and Digitalway - and one is a new Logitech cordless mouse.