Palm and Apple: two icons of the consumer technology industry. Over the past 15 years, they've had a complicated relationship. These firms have both learned from each others' mistakes, emulated each others' successes, and, for the first time, are now competing squarely against each other for mastery of the smartphone market.
In 1993, Apple launched what many consider to be the first serious attempt at a sophisticated PDA (personal digital assistant): the Newton MessagePad. Typically referred to simply as a Newton, it was, by most measures, a disaster in the marketplace. While it seemed like a brilliant concept, its uneven performance -- most notably, its lackluster handwriting recognition -- lead it to become the target of much mockery (e.g., several mentions in Doonesbury).
Watching all this transpire was a small group of entrepreneurs and inventors who wanted a crack at the PDA space. This foundling company lead by Jeff Hawkins was Palm. In 1996, it launched its own take on the PDA: the Palm Pilot. Palm had learned several lessons from Apple's experience with the Newton.
For example, instead of trying to transcribe anyone's handwriting (a feat difficult even for the human brain), Palm decided to require the user to learn Graffiti, a special script specifically developed for better handwriting recognition. And it worked; the Pilot soared to heights of popularity, partly because Graffiti was a much better solution to the input problem.
Apple abandoned the PDA market and, after failing to purchase Palm, their paths crossed only very infrequently over the next several years at the corporate level. However, several Apple employees left to join Palm. That trend continued; in fact, a significant percentage of Palm's employees are today former Apple staffers. Palm's Chairman, Jon Rubenstein, lead development of the original iPod while at Apple; he joined Palm and launched the program that resulted in the new Pre smartphone. That cross-breeding may be part of the reason that Palm and Apple continued to learn from each other.
In 1997, upon Steve Jobs' return to Apple, it decided it would cease this practice (for various reasons that continue to be debated to this day). Around the same time, Palm decided to start licensing its Palm OS to other hardware/device makers. Palm quickly began to understand the complexities associated with trying to run a business that sold devices while licensing the OS that ran those devices to its competitors. Diverging product lines and pressure from licensees to open up the OS beyond what Palm could readily manage eventually lead Palm to split in two; its device (PalmOne) and OS (PalmSource) sides went their separate ways with only a licensing agreement and some lingering animosity to connect them.
A few years later, Palm found that the venerable Palm OS was running out steam and chose to begin developing a Linux-based replacement. That new OS, which has been called webOS, will launch on the Palm Pre June 6, 2009.
This OS replacement situation was similar to one Apple faced about a decade ago. Around the time of Jobs' return, Apple decided to begin phasing out the original proprietary Mac OS and replace it with the new UNIX-based OS X, which launched in 2001.
Another way Palm has learned from Apple is how it handles product launches. Steve Jobs has long been considered master of the product launch. Apple tightly controls pre-launch information leaks, highly engineers new products so as to rely on minimal "patches" after launch, and puts heavy emphasis on industrial design. Palm's latest launch, that of the Palm Pre, has all the trademarks of an Apple event. Information has been, for the most part, carefully managed. Palm has taken extreme care in ensuring that the product that hits the streets on June 6 is as devoid of flaws as possible. And the trade-offs associated with form versus functionality are often skewed towards the former (e.g., the rationale for not including a removable memory card slot in the Pre was to ensure the unit was as sleek and small as possible). While both companies have less-than-perfect track records in product launches (e.g., Apple's MobileMe and Palm's Foleo), Palm is clearly learning from Apple's successes in this regard.
But the learning hasn't been all one-way; Apple has also learned quite a bit from Palm's experiences over the past 13 years. Several design decisions in the iPhone are straight out of Palm's playbook: a touchscreen, icon-based interface; an external "ringer" switch to silence the device; an application-launcher "home" screen; and so forth. While the iPhone is different in many ways from any Treo or Palm device ever made, it is clear that some elements were lifted from Palm's successful line of handhelds and smartphones. Palm returned the favor by including some multitouch gestures similar to those used in the iPhone; Apple was unhappy enough with that to threaten legal action, but nothing came of it (yet).
Apple also learned from one of Palm's main failings, which was how it managed third-party development in order to create value for its user community. While Palm had occasionally encouraged and/or partnered with software sites that catered to Palm OS users (e.g., Stingersoft, PalmGear, and Handango), there was never a centralized, easy-to-access catalog for those new to the platform. And even if the user found one of those sites, he still had to navigate downloading to a PC, sometimes unzipping and/or running an installer application, and then syncing the new app to his device. All told, it was not a thoughtfully engineered user experience suitable for the masses. Apple's App Store greatly improved all that by making the one place with all apps available directly from the device. While some might argue that the lack of an open market ecosystem retards innovation, there's no debate over the improvement the App Store approach has had on users' familiarity and usage of 3rd party software.
One area that both companies have had similarly poor performance is interacting with the fan community. Apple is notorious for suing blogs over rumors and product leaks. Palm has sued websites over naming issues. Both companies have had their share of PR faux pas when it comes to handling contentious issues on the Internet. Apple found itself in hot water over how it addressed pricing changes shortly after the 1st-gen iPhone launch. Palm messed up an opportunity with the PreDevCamp crowd over secrecy/transparency pressures (although that appears to be reconciled, now). While it's easy to make original mistakes, let's hope that both companies improve how they manage their community relations.
While I'm certainly not claiming that either Palm or Apple is beholden to the other company for its success (or failure), it seems clear that both companies have carefully observed each other and tried to learn from their experiences. Not replicating your competitors' mistakes is always helpful.
Going forward, as Palm and Apple find each other squarely in the other company's sights, it will be fascinating to watch how each move is countered and each new product is reacted to. With all the history and common blood linking these two firms, this match-up could be one of the more compelling and interesting over the next few years.
Update: Rene Ritchie pointed me (indirectly) to a list of Apple's product flops over the years, which is interesting reading to reflect on when you start thinking the company can do no wrong.
Update #2: Fortune has an interesting story on the impending rivalry: Palm fights back (against Apple)
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