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Original poster
Apr 12, 2001
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Bloomberg reveals that Apple CEO Steve Jobs reportedly approached then-Palm CEO Ed Colligan in August 2007 with a proposal that the two companies refrain from hiring each others' employees. Colligan rejected the proposal, claiming that the tactic was wrong and "likely illegal."
Colligan, who stepped down as CEO in June, discussed the matter with Jobs in August 2007, as the mobile-phone war heated up, according to the communications. Apple had introduced the iPhone two months earlier, just as Palm hired a former Apple executive, Jon Rubinstein, to develop new smart phones. Jobs, Apple's CEO, told Colligan he was concerned that Rubinstein was recruiting Apple employees. "We must do whatever we can to stop this," Jobs said in the communications.
While the exact proposal made by Jobs was not discovered by Bloomberg in its review of communications between Jobs and Colligan, Colligan's response indicates that an anti-poaching deal was in fact proposed.
"Your proposal that we agree that neither company will hire the other's employees, regardless of the individual's desires, is not only wrong, it is likely illegal," Colligan said to Jobs, 54, according to the communications. Colligan said he thought about Jobs's proposal and considered offering hiring concessions, before deciding against it, according to the exchanges.
The report comes on the heels of another claim that Apple and Google had a similar informal agreement during Google CEO Eric Schmidt's term on Apple's Board of Directors, a situation being investigated by the U.S. Department of Justice for possible antitrust violations.

Palm and Apple have developed an intense rivalry over the past several years as Rubinstein and a number of other former Apple employees have played key roles in rebuilding Palm with the development of the Palm Pre and its webOS operating system. On a conference call in January several weeks after the Pre's announcement, Apple Chief Operating Officer Tim Cook made what was viewed as veiled threats against Palm regarding multi-touch and other intellectual property claimed by Apple that has appeared in similar forms in the Pre. Palm and Apple have also continued to spar over the Pre's ability to sync media directly from iTunes by presenting itself as an iPod in its vendor and device identification codes.

Article Link: Palm Reportedly Rejected Jobs' Proposal Not to Poach Each Others' Employees
 

Rodimus Prime

macrumors G4
Oct 9, 2006
10,136
4
Well based on other reports I have read that apple is among several of these type of actions. You have the one among Google and apple, Apple was named in one with several other companies in the area have a unspoken agreement like this.

Then given the fact Jobs is a control freak he could of easily done this to do that.
 

QCassidy352

macrumors G4
Mar 20, 2003
11,778
5,410
Bay Area
if the proposal was to not hire each other's employees at all, that would probably be illegal, yes. If it was (as the apple-google arrangement supposedly is) not to use headhunters to actively seek out each other's employees then that's fine.
 

Small White Car

macrumors G4
Aug 29, 2006
10,943
1,303
Washington DC
if the proposal was to not hire each other's employees at all, that would probably be illegal, yes. If it was (as the apple-google arrangement supposedly is) not to use headhunters to actively seek out each other's employees then that's fine.

Right. What this CEO is describing is not the same as the deal Apple has with Google.

So did Jobs propose a different deal to Palm?
Was this guy confused or lying?

I wonder why there's a difference.
 

JonasLondon

macrumors regular
Sep 25, 2006
131
0
London
Palm.. Palm...? Oh yeah, I had the first dark-green thing which was kind of cool back then. So they're still in business? I just checked their website (which honestly looks pretty crap - what's with the enormous spacing when you click on "Details"?) - and tried to watch an ad - it...constant...ly..... inter...rupt...s...and...thus...i...s....not....eas...ily....watcha...ble - comapre it to the ads for the iPhone on Apple's website...

I think they should join Apple whilst they can. "If you can't beat them (which they can't)..."

or at least poach some more Apple web developers and video encoders.
 
If history is any guide....

Once upon a time, Palm was the be-all and end-all of PDA-type devices. They were the king, and rested on their laurels for too long.

Once upon a time, IBM was the king of the personal computer market. They didn't move, change, or adapt when the world moved under them, and were left behind.

Once upon a time, Lotus was king of the spreadsheets. WP was king of word processing. And so on.

Palm's day is done, unless they really succeed in breaking the market up with a totally new innovation. Right now, all they are trying to do is achieve "as good as an iPhone" status, and (so far) failing at that.

Someday, a device will come along which really will be the "iPhone killer". It's inevitable. Who is more likely to make that device - Palm, Apple themselves, or someone else? So far, the only one who can out-Apple Apple is Apple. The only employee Palm could hire who could change that is Jobs himself. Not too likely...
 

JonasLondon

macrumors regular
Sep 25, 2006
131
0
London
Jobs, control freak as ever.

IN a way I can understand how Jobs want's to keep companies who are pretty much on their last two years worth of existence to tempt away Apple senior guys who might just want to grab a big piece of money and then call it quits.

However, it might also just be an offer to play "fair". Because, with a couple of billion in the bank in CASH, Apple could buy anyone they wanted from Palm in a snap...

However, they might not want to buy this attitude:
"“You know the beautiful thing: June 29, 2009, is the two-year anniversary of the first shipment of the iPhone,” McNamee said today in an interview in San Francisco. “Not one of those people will still be using an iPhone a month later.”"

Oops. Did they really say that? Sounds like Monkey-Ballmer when the iPhone came out: "xxx for a PHONE?! I'm eating a hat if they sell any...blabla...yaddayadda". I am actually one of those early first-gen iPhone users - and I am still using it. The only reason I have not got the 3GS yet is because of Germany's stubborn T-Mobile offering only locked models. Will be getting mione from Italy or so soon though.
 

tmoore049

macrumors newbie
Jul 28, 2008
10
0
non-compete clauses are now wrong and illegal??
maybe i need to brush up on my contract drafting skills, but i have been under the impression throughout my career that a properly defined, reasonable agreement to protect intellectual property is somewhat normal, if not essential. while an outright prohibition in space and time may very well be unenforceable, an argument could be made that this was just a friendly reminder that liability may stick should a non-compete agreement be broken or a breach of contract induced. consequently, everybody should be weary of hiring anybody's ex-employees. of course its easy to blame jobs as a 'control freak' (although not personally knowing the man i feel it is simply idiotic to make such claims) this seems to me to be nothing more than a PREemptive (no pun intended) legal manouver to buttress a NCC
then again, you americans have some pretty 'interesting' anti-trust laws, so im not entirely sure where fiduciariy obligations end and anti-trust violations begin... (i would hazard a guess that most people are as confused as i am)
 

cjfpgh

macrumors newbie
Aug 20, 2009
3
0
Apple is just mad that someone has probably hired away their (now) ex-employees and is paying them more. So in turn it should be harder for Apple to retain talent at low, cheap salaries while keeping the margins on their products high.
 
Apple is just mad that someone has probably hired away their (now) ex-employees and is paying them more. So in turn it should be harder for Apple to retain talent at low, cheap salaries while keeping the margins on their products high.

1) Reference that Apple employees are at "low, cheap salaries" please.
2) If Palm is indeed paying top dollar, they are doing so on much lower sales and margins than Apple. How long can they continue to do so?
3) What is usually the largest line item in any P&L statement?
 

smeo2nm

macrumors newbie
Aug 20, 2009
2
0
Palm?

Palm is decent company trying to revolutionize the company by changing business model... (selling only OS and crappy phone to Apple like...)

I have nothing against pre... but I just hate how Palm boast multi-task and describe it as superior WebOS over OSX of iPhone when they, still, have better CPU than iPhone 3GS.

They just have better processor. That's all. It's not OS....
 

cjfpgh

macrumors newbie
Aug 20, 2009
3
0
1) Reference that Apple employees are at "low, cheap salaries" please.
2) If Palm is indeed paying top dollar, they are doing so on much lower sales and margins than Apple. How long can they continue to do so?
....
1) Assuming that X amount is made, and so someone offers X+Y amount to leave a control freak ...
2) Never said that Palm would be around long term.

It's all about the pot of gold at the end of the rainbow.
 
1) Assuming that X amount is made, and so someone offers X+Y amount to leave a control freak ...
2) Never said that Palm would be around long term.

What I meant was, do you have a reference that shows Apple employees, particularly the engineers Palm would be interested in, are paid less than average?

It's all about the pot of gold at the end of the rainbow.

The rainbow is frequently an optical illusion, and has no end, therefore no gold. I think the better aphorism is, "the grass is always greener on the other side".

I still maintain that if Palm is indeed dangling a bigger carrot, how long can they afford to do so? Clearly, they cannot afford to outspend Apple.
 

spillproof

macrumors 68020
Jun 4, 2009
2,028
2
USA
"We must do whatever we can to stop this," Jobs said in the communications.

Mr. Jobs, I'm sure you could invent that Men in Black mind eraser thing and use it on anyone who wants to leave Apple.
 

Paradigm

macrumors member
Feb 14, 2008
61
0
If history is any guide....

Once upon a time, Palm was the be-all and end-all of PDA-type devices. They were the king, and rested on their laurels for too long.

Once upon a time, IBM was the king of the personal computer market. They didn't move, change, or adapt when the world moved under them, and were left behind.

Once upon a time, Lotus was king of the spreadsheets. WP was king of word processing. And so on.

Palm's day is done, unless they really succeed in breaking the market up with a totally new innovation. Right now, all they are trying to do is achieve "as good as an iPhone" status, and (so far) failing at that.

Someday, a device will come along which really will be the "iPhone killer". It's inevitable. Who is more likely to make that device - Palm, Apple themselves, or someone else? So far, the only one who can out-Apple Apple is Apple. The only employee Palm could hire who could change that is Jobs himself. Not too likely...

Well said! I agree, there have been leaders in the past, and when it comes to technology, if and when Apple wants to join a particular technology "war" they jump in with both feet, tend to always have the superior product, and win the "war". With current hardware, I think the only subpar product is AppleTV. Don't get we wrong, it is a great little product, but it's capabilities are limited. It has the potential to be a Mac in one's living room, and doing so much more.

iPhone is far superior than any other product. I have 2 iPhone 3G. My city isn't 3G yet, so I'm usually usually Edge or WiFi. My mother has a Pre, thinking it was better than iPhone, she has had nothing but problems with it. Where was touch technology before iPhone? Non existent except for maybe the NintendoDS? And Nintendo is worried that they'll lose the handset gaming war to iPhone.
 
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