" In other words, should he shrink the Mac, which would be an epic feat of engineering, or enlarge the iPod? Jobs preferred the former option, since he would then have a mobile operating system he could customize for the many gizmos then on Apple’s drawing board. Rather than pick an approach right away, however, Jobs pitted the teams against each other in a bake-off."

http://www.businessweek.com/magazine/scott-forstall-the-sorc...

So, two separate teams working simultaneously on the same problem, competitively.