I'll let Bob explain the back and forth between Palm and Handspring.
I have many stories about what went on at Palm/Handspring/PalmOne after someone else started making these products. Palm changed after we blew it at MSL and we stopped manufacturing in Utah. Not sure I can do much other than Google the back story and abbreviate the mostly accurate stories about Palm Computing scattered about the web.
When the very first Pilot rolled off Cell 5, we were astounded. I tested the very first Palm Pilot at lunch before delivering it to our director of manufacturing. Perhaps that gives me a place in Palm history? Or not.
We loved the Palm Pilot from the beginning and it was, at the time, a game changer. Forget what I have said about Apple being the reason we have Android; it was Palm that changed the world and convinced people to carry a small device like a PDA. Apple should thank us!
We even kicked Apple's butt in the PDA market. I think we did, anyway. Remember the Apple Newton? It was not like the Palm. Even with the well-crafted modems and memory expansions we created for Apple.
PalmOne came out of a merger between Handspring and Palm's hardware unit.
I can tell you things almost came to a screeching halt after Donna Dubinski raised holy hell with us when we were USRobotics transistioning to MSL, a Contract Manufacturer. I can tell you that the Palm Pilot almost failed. Well, from our perspective since we almost lost the contract.
We would build Palms and many immediately went to rework. The fact that we would build ten thousand units a day and more than half went to rework did not sit well with her. Especial.ly when it came time to put one together. They were heat sealed and scrap rate was huge. Covers were scrapped, internal frames were scrapped and due to the primitive way we opened them for repair, lots of surface mount parts died.
We also sent units to distributors missing buttons, missing PCBs, battery connectors not installed, separation between the LCD and digitizer and the like.
I am glad the web was not so important back then or our mistakes would have killed us (perhaps Palm) dead.
Then we developed a two story high machine that heat sealed and cooled Palm V units with a high pass rate. Palm was pleased because their costs per unit dropped considerably; our production speed increased, leading to even lower costs.
Then we reserved a hotel room for one of her henchmen (henchmaiden, perhaps?) and her secretary in a suite that catered to gay couples and she was upset. Another story, perhaps.
On the bright side, I had the first 16MB Palm VII. I think it was our coolest device because it put a version of the web in your hand along with email. I beta tested them and not even the Palm representatives saw one before I had one in my hot little hands.
I felt bad when we stopped production. I could well imagine if we did things differently, I might be working for (well, most likely leading, because I am uber smart, LOL) a company that manufacturers Smartphones.
At the time, we made Plm Pilots for half of what the Chinease made them for. At the time, this was proof we could do it better than anyone on the planet.
In the next chapter, I'll go into my adventures with RIM. We manufactured prototypes for them and they had a few great ideas way back then. I found their fuel cell powered devices interesting. Too bad they never saw the market.
I thought they had something with their Interactive Pager and I still have the Megahertz Radio Modem. Too bad they were made in Canada.