Apple iPhone Drama Dies Down

IPhone hype is coming to a close, but dealings with Palm and the New York Times keep Apple on its toes.
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CUPERTINO, Calif. (TheStreet) -- Apple's(AAPL) - Get Report iPhone 4 hype has died down after just 48 hours, but poaching from Palm (PALM) and ignoring the New York Times helped the company drum up some iDrama.

Word came down from PreCentral.net late yesterday that Rich Dellinger, creator of Palm's unintrusive webOS banner-notification system, is leaving Palm to become senior user interface designer at

Apple

. This would be Dellinger's second stint at Apple and yet another big loss for Palm after

HP

(HPQ) - Get Report

announced its plans to take over the company. Last month, Palm lost main webOS designer Matias Duarte to

Google's

(GOOG) - Get Report

Android team.

Meanwhile, Wired notes that Apple has returned

iPad

news-reading application Pulse to its App Store after a vociferous objection by the

New York Times

, which doesn't want its RSS feed read by folks unwilling to pony up for its subscription service. While the newspaper's reaction is understandable, considering how heavily it's helped Apple promote the iPad and

Pulse

, Apple's reversal indicates it doesn't need a pile of dying pulp telling it what to do with its best-selling $4 app that's been downloaded 35,000 times in the past three weeks.

Apps and developers who aren't feuding with the Gray Lady are jockeying for position ahead of Apple's iOS 4 launch on June 21. When you're just one of 225,000 apps in the App Store and see potential in the 5 billion apps Steve Jobs says have already been downloaded, but are feeling pressure from the 15,000 app submissions Apple receives each week, a little salesmanship is required.

For example, Toktumi and its 99-cent VoIP app and $14.95 monthly service Line2 aren't afraid to look desperate in their press release explaining the benefits of iOS 4-enabled background processing to their service. Founder and CEO Peter Sisson explains the Retina-display subtlety of the upgrade:

"We are counting the days until iOS 4 ships on June 21st. Our customers have been asking for backgrounding from day one. Although the current version of Line2 still allows them to receive calls when the app isn't running, they come in over cellular. Now people who don't have cell reception or are trying to reduce their cell minutes can get their calls, even if they are listening to music or playing a game."

The world will never be the same.

-- Reported by Jason Notte in Boston.

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Jason Notte is a reporter for TheStreet.com. His writing has appeared in The New York Times, The Huffington Post, Esquire.com, Time Out New York, The Boston Herald, The Boston Phoenix, Metro newspaper and the Colorado Springs Independent.