In April 2008, Apple bought P.A. Semi, a microchip design company, with the intent of using the company's chips on Apple's iPods and iPhones.Brown, Erica. Apple Buys Chip Designer, Forbes (April 23, 2008). In the microprocessor industry, P.A. Semi and IBM were direct competitors. Five months later, after the release of new versions of the iPod and the iPhone, Apple picked up the search for a Senior VP, iPod/iPhone Division to replace Tony Fadell. Papermaster interviewed again in October, and Apple offered him the position on October 10, 2008. Papermaster accepted, told IBM he planned to accept on October 13, 2008, and notified them of acceptance on October 20, 2008. IBM offered Papermaster a raise if he agreed to stay or one year's salary if he delayed starting at Apple for one year. Papermaster declined the offer and submitted his formal resignation the next day.
