Smartphones 195 Palm's profitability was also destroyed. As soon as the iPhone hit the market in June 2007, even though it began selling more smartphones, its revenues started trending downwards. By December 2008, it had been loss making for six consecutive quarters and was burning through its cash pile. Colligan ­ who had insisted that `PC guys aren't just going to walk in' in late 2006 ­ announced 20 per cent cuts in costs, and job losses. One of them turned out to be his own: by July 2009 he was gone, replaced by Jon Rubinstein, who had joined in 2007 (after leaving Apple in March 2006). Palm was now staking its future on a new smartphone design ­ the Pre, launched in spring 2009 ­ and a new operating system, called webOS. At Microsoft, meanwhile, Ballmer had problems brewing in the mobile division. It had been obvious that the integration of Danger was never going to be simple: absorbing a working company that made hardware into one whose entire ethos is built around the primacy of software involves a culture shift for one or both. Even though the Danger team (in Allard's new PMX division) were nestled among the people who had built