IBM, never shy about blowing an opportunity to take over the market, was working on an iPod type product with the company that later went on to supply the hardware to Apple long before Apple showed up.
Among the interesting nuggets is the fact that PortalPlayer was working with a number of companies, including IBM, before concentrating its efforts on Apple. According to Knauss, IBM's plan was to create a small player built around its Microdrive (IBM later sold its drive business, including the Microdrive to Hitachi, which now sells it to Apple for use in the iPod Mini.) IBM also planned to use Bluetooth headphones--something that a few folks here have been wanting for some time.
I always wondered where the IBM executives who were in charge of OS/2 went to. Now I guess we know...
News source: News.com
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