Palm

"And you know what utterly beat us? Palm. Because Palm PDAs let you put the phone numbers you kept on scraps of paper or on your desktop computer into a device that you could carry with you. That’s it. That simple. You couldn’t jam a Rolodex into your pocket or purse, so Palm was the right solution for the time. It made sense. It had a reason to exist."

"There was a bigger game under way. Though they flattered Yankowski with attention, RIM’s partners had no interest in selling their company. They took Yankowski’s calls, showed up for meetings, and swapped boasts to keep him off guard. “Most people’s instincts tell them to seek clarity in business dealings, but ambiguity is more powerful in my view,” Balsillie explains. “You’d be surprised how long you can string competitors along without ever showing your cards.” An unsuspecting Yankowski pursued a takeover of RIM for months. Throughout Yankowski’s courtship of RIM, Balsillie downplayed his own company’s abilities and ambitions—flashing what he calls the “Aw, shucks card.” BlackBerry, he told Yankowski, was a small niche device lacking the global appeal of Palm. He talked of licensing Palm’s operating system and continually asked what RIM should do next. “That seemed to be his primary preoccupation,” Yankowski says. That’s exactly what RIM wanted him to think. “My objective,” comments Balsillie, “was to get him to underestimate RIM.” When Balsillie joined Yankowski in San Francisco for dinner later in 2000, the RIM chief pulled out a prototype of an upgraded BlackBerry, called the 957, which shared many of the features of the latest Palm device, including a large, square screen. He handed the model to Yankowski, who was suddenly full of questions: “What network will RIM use for this BlackBerry?” “We haven’t told anybody yet,” Balsillie replied. Eyeing the screen, Yankowski flashed Balsillie a big grin. “That’s okay. I already know.” “What do you mean?” “It says right here.” Yankowski pointed to the letters CDPD in the top right corner of the screen. CDPD, short for cellular digital packet data, was a wireless data network technology heavily promoted by its creator, AT&T. So that’s what RIM’s up to: dumping Mobitex for CDPD, Yankowski figured. Palm was already testing its next device on the CDPD data network. Balsillie was still giddy when he caught up with David Yach, a Canadian engineer who had been recently hired away from California software maker Sybase as RIM’s chief technology officer. Joining Yach in RIM’s jet, Balsillie blurted out: “He fell for it!” In fact, what he showed Yankowski earlier in the evening was a decoy with the screen changed to read CDPD by one of Yach’s engineers, with the specific intent of fooling the Palm boss. RIM had no interest in CDPD. Lazaridis viewed it as technically inferior technology, correctly predicting it would soon be dead. If Palm wanted to jump to CDPD, that was fine with Balsillie. For now, RIM was sticking with Mobitex, a slower but more reliable messaging highway. Yankowski has no recollection of the San Francisco dinner, but he remembers what happened soon afterward. Takeover talks broke off abruptly when Balsillie said he would have no part of a deal that did not hand him full executive control of the merged company. The petulant demand by a firm with one-twelfth the revenues of Palm seemed…"

"The hard work paid off: In 1992 Mahe received a scholarship to Simon Fraser University, where she completed undergraduate and graduate degrees in engineering. She joined PDA maker Palm in 2002, staying for nearly six years as it struggled to reinvent itself for a smartphone future. Mahe had built a wireless team for Palm almost from the ground up, catching the attention of Cupertino, and a few months after the iPhone was unveiled, Apple recruiters started a year-long campaign to draft her. She rebuffed them, believing that leaving her team would be a betrayal. But the recruiting intensified, culminating in Steve Jobs inviting Mahe over for dinner. He impressed her, although he lied about the dinner. “Just water for the whole two hours,” Mahe once told *Fortune*. “So that was a little bit of bait and switch!” Jobs, listening to her concerns, allowed her to bring over key members of her Palm team. According to Mahe’s account, he clinched the deal with this line: “You can stay with Palm and drive a bus full of people off a cliff, or you can come to Apple and give them a better place to land.”"