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October 2, 2008 9:40 AM PDT

Why Psystar should be supported

by Don Reisinger

Psystar, the hackintosh developer that's selling Mac OS X on its own machines, is finally getting some backlash from Apple over its claim that Steve Jobs and company is a monopoly. Apple claims that it's not, that it has numerous competitors, and that Psystar's complaint should be dismissed with prejudice.

I can't help but agree that, yes, Psystar's complaint of an Apple monopoly is total and utter garbage, but I think the company should be supported in its fight against Apple. I know that may not be the popular opinion in Cupertino, but the way I see it, supporting Psystar could lead to significant changes at Apple that will benefit all of us.

When I say that I support Psystar, I should note that I don't really care if it succeeds or not. See, I look at Psystar as a necessary evil; a company that matters little and will probably never have any real impact on any of us directly. More than anything, I look at Psystar as a company that can help Apple fill a void that's growing more significant in the marketplace each day: the need for a more ubiquitous robust operating system.

Psystar image

If nothing else, Psystar has shown that Apple's control over the market isn't necessarily best for consumers. Sure, it serves Apple's purposes well as the company continues its climb in the hardware market, but it locks us down into machines that we may not want.

And if Psystar is successful in its case against Apple and is able to continue selling Mac OS X on its own brand of machines, I think you'll see a significant shift in Apple strategy that will have a lasting impact on all of us. Of course, the one casualty in all this is Psystar itself.

If Psystar wins its case against Apple and is allowed to license Mac OS X and stay in business, a slew of Psystar clones will pop up across the globe. Realizing that there is now a precedent in place to ensure their success, companies will start licensing Mac OS X and sell the OS on their own brand of computers.

At that point, Apple will need to make a decision. Will it want to go to court and fight each company that crops up or will it want to kill each of them off as quickly as possible? The decision won't be an easy one. If it chooses the former, it risks losing and spending millions on lawyers that weren't able to get the job done. If it chooses the latter, it'll need to totally change its Mac business strategy in favor a software-first mentality.

And although that may not be in the cards now, I think that strategy -- choosing to kill off these small companies -- is the best way to go about it. And if it does follow that advice, you and I will benefit.

The only way to kill all these small companies is to license Mac OS X to major companies like Dell and HP. Both vendors are chomping at the bit to have Mac OS X offered on their computers because it makes perfect sense from their standpoint: Apple is the most popular company in the industry right now and a slew of people want to get their hands on anything made by Apple. Even better, it puts Microsoft on notice and gives the vendors some leverage on the Vista front.

From Apple's perspective, that may not be the most ideal move. Steve Jobs has constantly said that he views his company as a hardware organization first and he's the reason Apple doesn't license its OS anymore.

But what else can he do? Will he be content making little off small companies that are trying to grow at his own expense or would he rather license Mac OS X to the major companies and bring in some considerable revenue, while killing the small companies off? Granted, this may or may not hurt hardware sales, but given its leverage, there's no reason why Apple can't recoup those losses (and then some) on its software.

And that's exactly why we should support Psystar through all this. It's not because we have a soft spot in our hearts for the company or that we want to see it succeed over the long-term. It's because a licensed Mac OS X on computers from other companies will appeal to the greatest number of consumers, force Microsoft's hand to create a better operating system, and create a real competitive environment in the OS market that will force each and every company to offer better products.

As Vista shows, status quo just isn't working. We need a catalyst to spark change and maybe Psystar is it.

Check out Don's Digital Home podcast, Twitter feed, and FriendFeed.

Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.

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by davezatz October 2, 2008 9:45 AM PDT
Apple went down this path before licensing clones. And then they killed it. While Apple's computer products are comparatively overpriced, the tight integration between hardware and software provides a compelling experience. Something you might night find with third parties building machines with different parts.
Reply to this comment
by Lerianis October 2, 2008 1:12 PM PDT
Davezatz, here's news for you: difference in the experience between Windows Vista and OSX = 0! Less than zero, in fact, outside of gaming, with Mac's DON'T DO!
by istarman October 2, 2008 9:58 AM PDT
The last thing we need to see are half-assed clones with Mac OS X running on them. I'd rather have a piece of hardware I can trust than some hacked together junk. And even if Psystar wins, that doesn't mean Apple can't put something in its OS to break on clones.
Reply to this comment
by giyad October 2, 2008 10:11 AM PDT
you have the choice.... so don't complain. You want to buy a piece of hardware you can trust, then go to apple. But don't you think you should be able to choose?
by umbrae October 2, 2008 11:18 AM PDT
Funny, you actually think you can trust proprietary hardware. No thanks, I would rather have the same quality hardware at a non-inflated price. Sure there is some bad hardware out there, but you can get the exact same stuff Apple uses for 1/5 the price.
by thelemurking October 2, 2008 12:13 PM PDT
I'm fairly certain I can go to newegg and order some high quality parts that are capable of running OS X!

One would think that Apple would approve of any step necessary to increase market share. If some cheap clones are out there that would give people a similar experience to that of the full Apple hardware, then that's a plus for both Apple and the consumer. If the consumer becomes comfortable with the MacinClone, then maybe he/she will be more likely in the future to buy the actual Apple hardware next time around. Apple gets the benefit of increased market share in both OS and browser, and also is introduced to potential new customers that might not have looked at Apple the first time around.
by giyad October 2, 2008 10:10 AM PDT
hackintosh ftw... psystar, i'm rooting for you
Reply to this comment
by pfletcher October 2, 2008 10:17 AM PDT
" help Apple fill a void that's growing more significant in the marketplace each day: the need for a more ubiquitous robust operating system."

respectfully - you are talking nonsense. I and many 100,000s of people already use a ubiquitous, stable operating system. It is called Windows, and my case Windows Vista. There are probably less devices out there without Vista drivers than there are with OSX drivers.

The Apple operating system is just like every previous version - elitist, pretty, and guaranteed to force you and software developers to do things only one way.

I am a PC and I am an individual - and to quote Burger King - 'I want it my way'
Reply to this comment
by bourgtai October 2, 2008 11:20 AM PDT
That one way is called "integrated standards." Can you tell me why a calendar saved in Windows Calendar can't be imported to Microsoft Outlook, or Outlook Web Access? They're made by the exact same company, they should use the same file format.
by DrtyDogg October 2, 2008 12:56 PM PDT
I've never had a problem importing or exporting between those programs. It is quite easy actually.
by sciontcya October 3, 2008 11:26 AM PDT
An "elitist" OS?
Now that's the funniest **** I've ever read here.
FTW - you are classic.
And BTW, there's only 17 confirmed Vista users - the same idiots on the "MojaveExperiment" commercials...
by theoscnet October 8, 2008 10:38 AM PDT
HA HA! Whatta lemming!

"I am a PC and I am an individual"

No you're not, your a follower like MS assimilating into their "me-too" commercial.

Vista is not stable, I run it daily and see it crash and burn often enough to be objective about the situation. XP is stable but it took how many years to get it that way? Quit making Windows users look foolish!
by manwalklikebear October 20, 2008 2:27 PM PDT
Kudos, I agree that these mac fanboys praise their OSX way too much. Vista IS stable and ubiquitous. OSX is proprietary and elitist. Have fun paying extra $$ for that apple logo!
by rolegp October 2, 2008 10:32 AM PDT
Don Reisinger, you are a little naive if you think this is going to help Apple to change. Apple is labeled as a Monopoly, evidently you do not know what the term means. Apple does not control the computer world. There is Del, HP, E-Machine to name a few, Apple is geared towards a certain segment of the market, that does not make them a Monopoly, that makes them a smart company that gives them control over quality of hardware and software. I use to build PC systems and items that I bought said that they had been tested and met the Microsoft compatibility standards, I have had more problems with components that did not work. I agree with davezatz the last time Apple went down this road, you had allot of junk that did not work.
Reply to this comment
by robstak October 2, 2008 11:30 AM PDT
1. the monopoly he is referring to refers to computers that run OSX, legally.

2. So old mac clones suck. too bad that isnt now, then you wouldve had a point.
by Stufiano October 3, 2008 10:05 PM PDT
@rolegp

Apple is not a monopoly.
Why? The same reason the Supreme ct decided Reynolds Co. wasn't monopoly. In the case of Reynolds wrap, it has a substitute, plastic wrap. That is a good that can replace other good, doing similar functions. In studies, they proved when Reynolds rasied prices, ppl bought more plastic wrap and less aluminum foil. Yes it cannot do ALL the things reynolds wrap does and reynolds cannot do ALL the thing plastic wrap can do, yet they function similarly. So ppl buy more of one when the other raises prices. What happens when Apple raises prices? Ppl buy less macs and more computers with Windows/Unix/Linux. Of course Appl isn't an monopoly! Tough if you want to use Mac OS, it's simply an os, built on BSD. There are substitutes.
by open-mind October 2, 2008 10:46 AM PDT
Psystar sells a variety of computers with a variety of operating systems. Contrary to what the article states, Apple is not "killing" Psystar. Apply simply wants them to stop selling Mac compatibles.

If Apple really wants to kill off such cloners, that's simple. Just release an expandable mini-Tower Mac. This is a huge hole in Apple's product line, and Psystar's success is mostly based on filling it. Granted the Psystar is a little cheaper, but not much. If you really want a cheap general purpose tower, you can get a nice $200 gOS PC from Walmart.com.
Reply to this comment
by Penguinisto October 2, 2008 12:26 PM PDT
Agreed on this point - a 'mini powermac' would be a perfect point from which Apple could use to expand their marketshare in a big way.
by DrtyDogg October 2, 2008 12:57 PM PDT
That's what we hav OS X86 for.
by Galaxy5 October 2, 2008 10:52 AM PDT
Your column is called "the Digital Home".

Why are so many of your columns not just about Apple, but openly critical of them?

Ever write a column about Sony, or Dell, or Windows DRM? Those all have bigger real-life impacts on "the digital home" than Apple.
Reply to this comment
by rgersmrk October 2, 2008 11:18 AM PDT
Windows DRM? Apple and it's hardware is the ultimate form of DRM.

OSX = the worst form of DRM.
by Perry_Clease October 2, 2008 11:31 AM PDT
Non Apple stories don't generate as many hits
by robstak October 2, 2008 11:31 AM PDT
and are also wayyyyy more boring... but i do fall asleep in my digital home, so maybe you have a point...
by pjhenry1216 October 2, 2008 11:47 AM PDT
Apple is trying to take over or be heavily involved in most forms of entertainment. I'd say thats a significant thing in the "digital home." Sony sells TVs. I guess he could write reviews for their products or maybe for the PS3. But honestly, they haven't done anything that stands out that much. Windows DRM is nowhere near as strict as Apple's, whether it be through iTunes or the operating system itself. Dell pretty much just sells computers. Thats it. Apple sells more than that.

There are a LOT of people who are openly critical about Apple because its difficult to get those voices heard. Most people get blasted for saying anything bad about Apple, whether its justified or not.
by thelemurking October 2, 2008 12:16 PM PDT
If you want Pro Apple stories, go read the crapple articles that Tom writes. I've never seen such overt biasness as the crap that Tom writes. Granted his column is specifically geared towards Apple, but man, that guy is so beyond fan boy you can't take anything he says seriously.
by DrtyDogg October 2, 2008 12:41 PM PDT
I actually like him writing about Apple, as he does use Apple products, he seems to be one of the few who doesn't take it as a religion.
by ouiving--2008 October 2, 2008 11:04 AM PDT
Go back to reviewing TV's
Reply to this comment
by peramica October 2, 2008 11:18 AM PDT
Don makes some excellent arguments here. There is one point which I would quibble with; in paragraph 3, he points out the need for a more ubiquitous and robust operating system. Mac OS X, Windows, and LInux have all made huge strides on interoperability. I regularly work with Office documents in iWork, and have no issue with sharing these with others. Add to that the increasing emphasis on the cloud and the browser as an operating system, and there simply isn't the need there was 10 years ago when there were far more proprietary standards.
However, despite legal questions surrounding the EULA, a plain reading of makes Psystar's actions illegal, and until the EULA is challenged in court, this discussion essentially moot
Reply to this comment
by A.T. October 2, 2008 11:25 AM PDT
How is Apple NOT a monopoly? That's totally utter rubbish. If you want to use Mac OS X, you have to buy a Mac and only a Mac. Even for the iPod and iPhone, it's a closed eco-system. You can't use the software on non-Apple product. Of course the typical fanboy's argument is don't use any Apple product if you don't want to be locked into the closed system. That sounds like a monopoly to me already.

Apple's hardware are not exactly good for the price you pay. Because there's no competition in terms of hardware design for Mac OS X, Mac hardware will not improve but stay in their close-minded system.

I do hope Psystar wins on this one and open the floodgates for better Mac hardware that's not from Apple.

Apple/Mac/OS X is a closed system and it's a MONOPOLY. Period.
Reply to this comment
by mrgoodall October 2, 2008 11:40 AM PDT
@ A.T. - Mrs Fields should share her choc chip cookie recipe so that you can get her product from other cookie companies since she's the only one that makes choc hip cookies taste like hers? Following your line of thinking, then Mrs Fields is a monopoly on the cookie then too huh?
by DrtyDogg October 2, 2008 12:49 PM PDT
@mrgoodall: A better analogy is Mrs Fields suing a flower shop for puting her cookies inside of a gift basket.
by Lerianis October 2, 2008 1:15 PM PDT
Bingo, A.T. that is the problem I have with Apple: their hardware is SEVERELY overpriced compared to a PC from Gateway or HP even, which is KNOWN for being overpriced.
Someone needs to take Apple to court over that, because there is NO reason they should charge such a...... premium for the same hardware as in another computer with Windows Vista or XP.
by protagonistic October 2, 2008 1:23 PM PDT
Just to refresh your memory since you obviously do not know what the term monopoly means:
monopoly
? [usu. with negative ] the exclusive possession, control, or exercise of something : men don't have a monopoly on unrequited love.
? a company or group having exclusive control over a commodity or service : areas where cable companies operate as monopolies.
? a commodity or service controlled in this way

Since almost all computers sold today have Windows pre-installed Apple cannot possibly be a monopoly. If you want to use the latest version of Windows Media Player you have to buy Windows. So I guess you also feel the WMP is a music player monopoly?
by A.T. October 2, 2008 2:23 PM PDT
Fanboys will always be fanboys with cookie analogy who can't see anywhere further than their cookie jars.

The WMP example is flawed too. You can run WMP on a Mac if you know how to do it without breaking the EULA. Whereas, in this Psystar/Apple case, Apple refused to allow the usage of Mac OS X on any machine other than the Macs.

Microsoft got into trouble because of being anti-competitive. Apple with a closed system a.k.a. monopoly has always been anti-competitive and is constantly pro-active about it. Just because they were small then, no one really cares. Until everyone realises that it's too late, someone must do something now.

Apple is extremely smart on getting support from fanboys and fans. But if one really sits down and studies carefully on Apple's behavior in recent times, you will find whoever quoted the dictionary here on monopoly is pretty spot on. Quoting from a dictionary without understanding it is useless too.

Please don't compare cars to computers. It's just dumb, honestly. The issue is focused on locking users to a software/hardware eco-system, again monopoly. As a user, I want choice. OS shouldn't be locked to a specific brand of hardware.
by Mathue October 2, 2008 4:03 PM PDT
I find the Apple Monopoly idea ludicrous. By such standards, Lexus must share it's proprietary IP with Ford or whatever pairing up you might want to use. And no, that's hardly a dumb example A.T. Apple does not have a monopoly on computers, it's barely has a 5% share worldwide. Why exactly this is a fanboy issue doesn't make sense. I can buy very nice crystal at Swarovski, they have a proprietary process and don't share it. I can still by non Swarovski crystal, and do so for less but it's not branded Swarovski nor does it have quite the same sparkle. High price, so what if they sell their's at a premium. Exactly what US law requires a company to sell at Walmart prices? The people that trot out the price issue merely are cheap and can't afford 15% more. That's too bad, maybe we can get a bailout for you types as well since we're all about bailing out homeowners right now.
by A.T. October 2, 2008 11:14 PM PDT
True that Apple does not have monopoly in the computer industry. The point of argument is OS/hardware monopoly. Analogy of cars, jewellery and supermarkets are still dumb. I can understand that fanboys don't want choices but I want choice. It's has nothing to do $$$ but I do welcome cheaper Mac alternative with OS X. HP or Dell can sell at Apple prices and run Mac OS X. Needs to create competition to get better hardware. Closed single system is a monopoly - get it in your head. You may not see the effects now because it's 5% worldwide share. Until it gets too late, you'd then have to agree with me that it's a monopoly after all and all along.
by kelmon October 3, 2008 2:14 AM PDT
Yes, Apple has a monopoly for Macs but what is the problem with this? If you don't like what they charge then you can get a computer from someone else. Garmin has a monopoly on Garmin navigation devices but that doesn't stop you from buying a TomTom to achieve the same things.

Ultimately, if Apple was a monopoly supplier of computing services then the prices they charge could be considered a problem. But they aren't. As any debate on a new Apple product will show, you can no doubt by a comparable product at a lower price from someone else. Just because Microsoft's business strategy is to simply sell software to hardware vendors does not mean that the same must be true of anyone else. Apple simply makes their own products and sells them at a price they think the customer will pay.
by theoscnet October 8, 2008 10:48 AM PDT
Dude, you have never even cracked open a Mac have you? Take a look inside a MacPro sometime and see what's missing in yours.

http://www.apple.com/macpro/design.html

There are no messy wires in a MacPro or contorting to install or upgrade something. Hell there isn't even any need for keeping track of screws. It's a tool-less system.

Your comment about Apple being a monopoly is completely idiotic. Apple has a monopoly on Apple computers?!? Are you really that clueless? By that standard, Sony has a monopoly on PS3s and MS has a monopoly on Xboxes and Nintendo has a monopoly on Wiis! These three companies don't have monopolies on their own systems, they compete with each other, just as Dell, HP, Acer, MS, etc. compete with Apple.
by msalsbury October 2, 2008 11:25 AM PDT
I'm very platform agnostic, so I can appreciate what Don's saying here. I use Windows XP, Windows Vista, Linux, and OS X pretty much daily, for different reasons. On the job, I use and support both Windows and Macintosh. In my opinion, on properly selected hardware (or in Apple's case, their hardware), Windows, Linux, and OS X are equally stable and reliable. I've managed to crash all 3 at different times, and I've found that I tend to need to reboot all three roughly as often for much the same reasons. Running any of the three on sub-par hardware by questionable manufacturers, or in combination with poorly written third-party software, will make any of them behave poorly.

I join Don in support of Psystar. If you look at personal computers as the market, then Apple is in fact not a monopoly but a niche (albeit a growing niche) player. If you look at "computers running OS X" as the market, however, then Apple is in fact a monopoly. You can't buy a computer to run OS X unless it's made by the Cupertino gang. As a result, Apple is free to innovate at its leisure, update its hardware on its own time, etc. A win by Psystar would put Apple on the defensive, having to compete both on price and performance against Mac clone makers. It would also, I have to think, strike fear in the hearts of the Windows developers at Microsoft. It would, as Don notes, give the HPs and Dells of the world a bargaining chip in their negotiations. All consumers, Mac and Windows users alike, would benefit.

Mac users will benefit because Apple will have to update its hardware often in order to keep clone makers from producing a product that has price/performance superiority. (This is why Apple killed the clones back in the 90's... they were providing a decent product at a price Apple couldn't match easily, and Apple wasn't making enough on the clones to offset the loss in their own hardware sales. It had nothing to do with, as "rolegp" implies, the clones being crappy products. I owned a couple of the clones, so I know that for a fact.) Mac users will also benefit from having alternatives at different price points than Apple currently offers. (For example, a desktop system priced between the Mac Mini and the Mac Pro that isn't an all-in-one iMac.)

Windows users would have a greater incentive to switch to OS X, since they would no longer be locked into Apple-branded hardware. This would make it much easier for corporations to justify a switch, no longer being locked into a single supplier for OS X hardware.

Windows users would also benefit from the increased pressure on Microsoft to compete with Apple and OS X.

To borrow an election slogan, a loss by Psystar would mean "more of the same" from both Apple and Microsoft.

And realize, opening up OS X to non-Apple hardware doesn't mean Apple would have to support every configuration Windows or Linux supports. They could pick and choose the chipsets, processors, graphics cards, etc., that they want to support and require third parties to build systems from those hand-picked components in order to receive Apple support. This would give Apple some control (though not as much as today) over the hardware running OS X and allow them to minimize the negative impact to the "Macintosh experience" brought about by third-party hardware. It needn't be, as many Mac fans seem to think, "hacked-together junk".

I'd like to see Psystar win, not because I care about buying a machine from them, but because I think it's a good thing for the industry as a whole... even though, as Don notes, it might not be the best thing for Apple itself.
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by kelmon October 3, 2008 2:19 AM PDT
Yes, I tend to agree with this. My only reservation is if opening up the Mac platform to other manufacturers would cause a degradation in the quality of the products produced. Currently Apple is making a lot of money and is able to invest this money in the development of new products but it seems unlikely that opening up the platform would generate more revenue.

If the quality of products can be maintained or improved then it does not really matter to me if the computer I use OS X on has an Apple badge or not. An increase in choice would be nice but I would not accept that if the overall experience deteriorates as a result.
by drfrost October 6, 2008 11:03 AM PDT
Kelmon:

Apple charges more for it's hardware because it's a premium you pay to be able to use OS X. Despite what many Apple fans would like to assert, you can put a very high quality system together for less than what Apple is charging (though I do agree their hardware is more competitive today than it has ever been).

I also agree with Msalsbury that the reason the clones were killed was NOT because they were making horribly inferior products, another falsehood that Apple fans have chosen to believe despite the lack of evidence.

I used to be very passionate about this particular subject. I wanted Apple OS on my hardware (I build my own computers and have for years). Now I just don't care any more. There are so many nice things about Linux now that I don't have to rely on Apple to avoid the long arm of Microsoft.

The real question here is not whether this would be good for us (the consumer), or good for the market or even good for Apple (in the long run). The only question that really matters is if this is legal or not. Apple has no obligation to do what's best for their customers. They have no obligation to do what's best for the market. (Technically, Apple is a publicly traded company so they are supposed to do what's best for the almighty bottom line but most CEO's (and boards) choose to take the short term view over the long term one. Regardless, there's really no way to convince them that releasing OS X for PC hardware would be the best way to go.) Apple is going to do what they "think" is best for Apple.

Personally, I don't think they meet the legal definition of monopoly, and, legally, I think that's a weak argument for Psystar to make. I think Psystar could have made a better argument coming from a different angle (and it would have been far more interesting to watch). In the end, my only real interest at this point is hoping that Psystar can increase the "rights" of consumers and take EULA's down a notch (or ten).
by robstak October 2, 2008 11:34 AM PDT
sigh.

Established economic theory dictates that competition is not only benefits consumers but motivates innovation.

If psystar sucks, theyll go out of business on their own. If they are great, then apple might have to work a little harder to stay on top.

so someone make a valid point that disproves me...
Reply to this comment
by pjhenry1216 October 2, 2008 11:53 AM PDT
I agree with you completely. I don't understand why people just won't let the market decide things but instead feel that various portions of the market should be strictly controlled.
by jragosta October 2, 2008 6:28 PM PDT
"Established economic theory dictates that competition is not only benefits consumers but motivates innovation.

If psystar sucks, theyll go out of business on their own. If they are great, then apple might have to work a little harder to stay on top.

so someone make a valid point that disproves me..."

Competition does benefit consumers. Theft does not.

If you remove the profit from innovating, innovation will stop. The system depends on companies benefiting from their work. Psystar is trying to benefit from Apple's work without any kind of agreement.
by Stufiano October 3, 2008 10:18 PM PDT
Apparently, you pick and choose "established economic theory" when you fail to remember substitutes and compliments, meaning Apple is already in considerable competition with other computer companies. The psystar model isn't using economic theory, it is using the US legal system.

Furthermore, there is the monopoly, in sense of what posters are talking about, and the "nature monopoly". Of which any person making a electronic product would have, software + hardware.
by Penguinisto October 4, 2008 8:09 AM PDT
You missed something: Apple is a Computer company. Microsoft is a software company. The two concepts are radically different.

If Allen-Bradley started using Siemens' PLC OS in its Programmable Logic Controllers without a specific license to do so (just by buying copies of the OS and installing them one at a time), nobody would say 'boo' about it, and AB would lose the lawsuit that Siemens would immediately bring. If Chevrolet started using Ford's EFI controller programming in it's engine control chips w/o a fat inter-corporate licensing agreement to specifically do so, again, the lawsuit would be a no-brainer.

That said, Apple says specifically in its license that you cannot stick OSX into a non-Apple computer. I did it as a hobbyist, and judging by the thriving Hackintosh community that Apple has never molested or bothered, it appears that Apple doesn't mind that. Now making a commercial competitor to Apple by using their own products? Nope - I'd expect to get sued if I did it.
by Alex Alexzander October 2, 2008 11:39 AM PDT
Apple's worry is simple; What if everyone buys a Dell with OS X on it rather than an Apple manufactured Macintosh with OSX on it? They fear losing the substantial gross margins they now command. And in fact, it's their largest revenue as well. So gross margins could drop, and revenue could drop. In exchange for this they'd have to hope that enough sales of the licenses OSX could be made to offset this hardware loss in revenue, margin, and profits.

Clear Apple is not confident that they can make money solely on the OS as Microsoft does. They don't believe their is enough of a customer base there. Make no mistake about it. The OS is merely there to sell the machine. Apple cares about selling you a computer at 36% GM. And the carrot used to drive that sales is OSX. Why sell the carrot to Dell if you don't have to?

Even though Dell is #2, Apple actually makes more raw profits than Dell does. Apple no doubt likes their model for making money.

What I don't understand about Apple is why they don't sell PCs with Windows pre-installed. They are after all a hardware company. And Windows is the best-selling OS. Why not sell what most customers want to buy? It would immediately raise the value of Apple. And please don't even bother replying about how Apple cares about quality or some other bull like that. Apple is a public company and ought to be creating shareholder value. Steve Jobs is merely an employee. He is not the owner. I am a stock holder, though he has more shares than I do, he still works for me and every other stock holder.

Alex Alexzander
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by daedbird October 2, 2008 12:17 PM PDT
Alex, your last paragraph about how Apple should sell Windows preinstalled is wrong. In order for Apple to prepackage Windows in their product, they would have to probably sign a contract with Microsoft, and if I recall, they had limits on what software could be installed on the machine with their OS. In addition, that would increase the cost of their product, and go against the whole reason Apple makes both the hardware and software - the integration between the two.

I am sure the shares Apple are doing fine since, as you point out, Apple makes more raw profit on the sale of each machine than Dell. Why, because Dell has a focus on the inexpensive, or entry level market. Apple leads the +$1,100 computer sales, because it focuses on premium, or more expensive models. One, I might add, is something HP and Dell look to copy with their acquisitions of Voodoo and Alienware.

Yes, Mac OS is the carrot selling the computer. But Jobs is more than a mere employee, he is the CEO and the face, as well as voice of the company. He sets the tone, and if more stockholders were unhappy with his vision of Aplle, he would have been removed at a shareholders meeting......Things must be ok in Cupertino then.....
by kelmon October 3, 2008 2:25 AM PDT
With respect, if Apple were to sell computers with Windows installed on them then not only would they be giving money unnecessarily to Microsoft, but they would then have to compete directly against a very large market of PC manufacturers. Apple should concentrate on their core products.

Having both OS X and WIndows installed by Apple is probably not something there is much demand for and they would also end up having to deliver support for Windows.
by 22mojom22 October 3, 2008 1:03 PM PDT
Actually, I do sometimes wonder why Apple does not sell systems pre-configured with Windows too. Since in my experience the only way to make an apple do everything that you could want a computer to do is to install Windows on it anyway. The fan boys can argue with me, but i suspect that you know it is true. How does Crysis run natively on OSX?
by dadsgravy October 2, 2008 11:40 AM PDT
blah, blah, blah. Look at me, I'm on the internet.
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by daedbird October 2, 2008 11:43 AM PDT
Once again, Don writes about his myopic view of computing. Should Apple have an inexpensive computer that could serve as an entry point for consumers? Yes, but their impression is that the entry computer is the ipod and iphone, which gives a taste of their hardware. Apple tried with the Mac Mini, and well frankly, people looking to buy the cheapest machine want something like a Dell, where their volume allows for savings. Apple is not a monopoly (5 percent marketshare does not make a monopoly) they have a different philosophy than the rest of the PC market. Its a vertical philosophy - that they will make it all. Like it of not, you know that when you buy in, the OS and the hardware are linked. This allows Apple to control the entire experience, and cuts down on debugging issues working on multiple platforms. It also allows them to release new versions of their OS faster, and quite frankly, the hardware sales probably subsidize the software. If Apple was entirely a software company, they probably have to charge as much as Microsoft does.
This vertical system is quite similar to the car industry. Each company builds their own unique vehicles, which often share common, off shelf components. Camera companies are vertical as well, making you choose their proprietary lensmount. If someone sued Canon because they did not allow them to use their lensmount, they would be laughed out of the courtroom. Canon sees it in their best interest to license the mount to lensmakers, so they their customers have more options, but not to cameramakers.
What does this have to do with computers...not much really, but more than this stupid column
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by mrgoodall October 2, 2008 11:51 AM PDT
Psytar is pulling a David Blaine, its a misdirection act guys, open your eyes. Apple's EULA says clear as day, you cant resell the OS and install it on Non-Apple HW. I'll play DA for a minute. So Psytar wins, when a user has a performance problem with Final Cut Pro running on Psytar HW, does the client call Apple or Psytar? Apple bears the blame for crappy performance. It happens now with the iphone, cant make a call, iphone sucks, despite the fact that ATT's network may not provide the best coverage in the area you are in. So sorry fellas, im with Apple on this, you cant cheer for the lil guy all ya want, but the lil guy in this case is a thief.
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by Lerianis October 2, 2008 1:17 PM PDT
Wrong. In areas where 3G coverage is ubiquitous....... the iPhone 3G SUCKS compared to other phones. I've been reading that on NUMEROUS other websites that are technical websites like CNET.... they have basically proven that there is something wrong with the iPhone. What it is? They can't even tell, because from one iPhone to the other in the SAME LOCATION.... signal strength, etc. is widely varying.
by Willie Winkie October 2, 2008 12:00 PM PDT
Apple has WISELY chosen to keep VERY TIGHT control over its hardware and software. You don't ask Rolls Royce, Ferrari or Lamborghini to offer a cheap-o version of their signature products. And we don't ask Crystal Champagne to license their fermenting process to Boon's Farm. When you've got a top quality product with a flawless reputation, you don't trust just any rube to market your crown jewels. Yes, maybe you can build a system with off-the-shelf parts for less money. However, as soon as you start letting just anyone with a motherboard and hard drive from Taiwan build Apple systems, they will become as crummy as Microsoft products.
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by DrtyDogg October 2, 2008 12:44 PM PDT
but I can put a ferrari engine in my pinto, and drink Crystal from a dixie cup if I want. Pyostar isn't looking for secrets here they just want to re-sell a product.
by DaBeez October 2, 2008 12:11 PM PDT
OMG. . . When is CNET going to cease being the PR firm for Redmond?
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by DrtyDogg October 2, 2008 12:45 PM PDT
They did that last year when Apple became the largest advertiser.
by Valethar October 2, 2008 1:31 PM PDT
More importantly, when are they going to get rid of this idiot blogger?
by blakestar October 2, 2008 12:25 PM PDT
While it may be an advantage to the end user in that other operating systems may improve to come up to Apple's high standards, licensing the Mac OS introduces the same problems for Apple that Microsoft has with qualifying multiple hardware vendors for Windows. Kernel panics would be more common and OS X could probably end up being not as solid as it is now when it is being developed with the hardware.
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by Lerianis October 2, 2008 1:21 PM PDT
Wrong. I have NEVER had a kernel panic or bluescreen on my computer, UNLESS it was because of a driver issue or DRM issue (added on to Vista or XP).
Heck, the ONLY time my Windows Vista 64-bit computer bluescreened on me was when I was installing something that told me it would bluescreen and to install an update to the program after the computer restarted. I also installed ANOTHER program that said it would bluescreen..... Vista 64-bit didn't let it do that, and I was easily able to install the update to it WITHOUT having to restart my computer.
The best thing Microsoft could do: refuse to allow ANY system level drivers. For DRM, for hardware, etc. UNLESS THEY ARE ABSOLUTELY NECESSARY! Guess what? Even motherboard drivers on Vista run in user space!
by Perry_Clease October 2, 2008 12:26 PM PDT
If Psytar wants to fill a "significant" void then they should write their own OS instead of claim-jumping someone else's.

As to Apple being a monopoly. Well monopolies per se are not illegal.
Reply to this comment
by DrtyDogg October 2, 2008 12:47 PM PDT
Not exactly "claim-jumping" when every copy of OS X was purchased legally.
by Lerianis October 2, 2008 1:23 PM PDT
Actually, by the reading of the Sherman anti-trust act LITERALLY.... yes, Monopolies are illegal, period and done with.... UNLESS you don't have any other competitors because you are doing everything by the book and no one wants to challenge you because you are that good.
With Apple and Microsoft (a few years ago for the latter)...... that is not true, that last part of my statement about doing everything by the book.
by rapier1 October 2, 2008 4:38 PM PDT
Do you have any idea how hard it is to write an OS from the ground up? This is why Apple *didn't* do that, its a BSD/GNU varient.
Showing 1 of 2 pages (82 Comments)
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Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.

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