The creator of the iPod first offered the idea to Philips and RealNetworks, but they failed to see its potential.
Tony Fadell was a former employee of General Magic and Phillips who wanted to invent a better MP3player. After being turned down by RealNetworks and Phillips, Fadell found support for his project with Apple. He was hired by Apple Computers in 2001 as an independent contractor to lead a team of 30 people to develop the new MP3 player.