This paper proposes a modification of ADPCM algorithm to be suitable for hardware implementation of portable audio devices. This is accomplished by a simplification of predictor coefficient algorithm which normally requires a high complexity correlation algorithm, while the sound quality measured as SNR remains relatively the same to those of the original ADPCM. The less complicated calculation results in a reduction of the chip area and power consumption, thus it is suitable for pocket solid-state speech and audio recorder. Simulations on MATLAB verify the performances and experimental results on XILINX FPGA synthesis confirming the functionalities and significant reduction of device count by 63% of the implementation by the original algorithm.