> So, Schmidt had inside knowledge of before following Apple into the smartphone category?

That's the theory/assumption. Android started as an OS for blackberry-style phones with physical keyboard, non touch screens.

Almost as soon as the iPhone launch, Schmidt left the board, and Android pivoted to a multi-touch interface almost immediately, and a year later the HTC Dream came out.

I don't think anyone has any real proof of wrongdoing but the timing is certainly suspicious