While Apple dominates financially today, 2001 marked an uncertain time for the company. The recent tech stock crash loomed fresh in everyone's minds, and Apple was just barely breaking even financially. The company's main focus was on the Mac computer line, and it had few resources to spare for other projects.

Fadell knew he had to finish iPod quickly so Apple wouldn't shut down the project; he had to justify its existence as a financial drain on the company. He also felt that competitors would beat Apple to market with a similar device if Apple didn't work as fast as it could.

To build the core iPod development team, Fadell hired engineers from his startup company, Fuse, and veterans from General Magic and Philips.

"We weren't able to take other engineers or other resources from other parts of Apple, because they were already constrained," says Fadell. "We couldn't shut down the Mac to build the iPod, right?"

Apple placed Fadell's team, which consisted of about 25 regulars and a varying number of contractors, in what could be considered the Siberia of Apple: one of the oldest, dingiest buildings on its campus. (The building was so dilapidated that Apple had to kick the iPod team out after a couple of projects to substantially renovate it.)