What do you think? Would it be completely nuts to say no? Should Cornice have chosen cell phones over the iPod?

Kevin Magenis hung up the phone, looked out his office window into his company’s development lab, and thought about what he’d just heard. The callers were from Apple Computer, and they wanted to talk business. Magenis’s startup, Cornice, had developed tiny hard drives with a one-inch platter for storing music or digital files. And it made them for a third of the price of rivals like IBM.
That’s why the Apple execs called that afternoon in late 2002. Would Cornice be interested, they wanted to know, in supplying the drives for the iPod Mini, the new, smaller version of Apple’s MP3 player?
Digital music was still new, and no single player had emerged to dominate. But Apple was clearly the most innovative player on the scene, and hooking up with the company would definitely be a coup for Cornice.
Magenis was tempted. The problem was that Cornice was already working with two other makers of MP3 players, Thomson/RCA and Rio, and the Apple execs were insisting on an exclusive deal.
Honoring that request would mean betraying two key clients.