Organizer giant Palm has felt the pressure of Apple's impending release of its new iPhone and hired the maestro of interface design Paul Mercer to spearhead its counter-thrust.

Industry insiders believe that the battle in the cellphone business has shifted from hardware to software, and Palm believes that hiring Mercer will breathe new life on its upcoming products to replace its aging palm OS used in most of its products.

The move was determined when Apple decided to come up with its own organizer/ cellphone hybrid called iPhone, which clearly poses a danger to Palm's own line of hybrids. The cause for concern may have been Apple's reputation for creating innovative products.

And though the iPhone is still months away from shipping, Palm has wasted no time in acquiring the services of the 39-year old Mercer who is an industry veteran and has worked with Apple, along with other independent firms that he himself founded. Paul Saffo, a Silicon Valley forecaster said, "heÂ?s the best of the best in this space."

Palm has been the pioneer in the handheld industry, but has been on its toes in recent years as challenges came left and right in the form of industry hard-hitters Sony Ericsson, Nokia and Microsoft.