[kenthorvath]

But, bear in mind that the iPhone was only ANNOUNCED in 2007, not developed - in fact rumors of an iPad-like device (the basis of the iPhone interface) were circulating for almost a decade prior to the iPhone's announcement. During that time, Schmidt was on the board of Apple, and was certainly in a position to benefit from knowledge of Apple's mobile strategy.

So in short, it is plausible and likely that Apple began working on a touch screen phone years before Google even considered purchasing Android.

And correct me if I'm wrong but, weren't the early models of Google's phone based on a blackberry-like design with a half screen / half keyboard front? And wasn't it not until Apple unveiled the iPhone that Android began to take on its present form?