Open Tech's "Mac clone" demonstrates a firm misunderstanding of the law

We don't suppose there's any friendlier way to put this: Open Tech Inc. is setting itself up for an Apple lawsuit, without any of the nice "product people will want to buy" stuff to balance out the equation. See, Open Tech thinks you're an idiot, and that you'll buy one of their "open computers" that can run (gasp!) OS X, XP, Vista or Ubuntu -- just like almost every other PC on the market today. We're guessing they figure that as long as they aren't loading OS X onto the computer themselves, they won't have any trouble from Apple, but that's where they go wrong. In addition to the EULA and copyright allegations, Apple's complaint against Psystar has claims for inducing copyright infringement and infringing on Apple trademarks by advertising non-Apple machines as compatible with OS X which is exactly Open Tech's ploy here. Mix that in with some crappy specs, an August-ish launch timeframe and no pricepoints to speak of, and you have one of the least desirable computers known to man. And hopefully a fun lawsuit for us to enjoy.

[Bradley @ Jul 22nd 2008 6:10AM]

Hey Apple! Let us install your operating system on whatever machine we want. Make more money. Everyone's happy.

[deyanimay @ Jul 22nd 2008 6:19AM]

The only reason apple doesn't have BSOD is that they control the hardware their os runs on. So if apple opened up to any hardware they would have similar problems because not everything is 100% supported.

[ArcticFox @ Jul 22nd 2008 6:41AM]

Its not rocket science, all it needs is a bit of common sense.

Apple machines run on intel chipsets, apple could easily put out a version of OSX that installs on "open boxes" that only supports a handful of hardware that forms the basis for the real macs, they dont have to write drivers for every bit of hardware in the world.

Then you have a choice, you build your own beige box or you go buy an OEM just like every Windows PC.

[Kelmon @ Jul 22nd 2008 6:52AM]

Given that 50% of the company's revenue comes from the sale of Mac hardware and only 5% comes from the sale of software, opening up the EULA to allow people to install the Mac OS on non-Apple hardware would be corporate suicide. The argument, of course, is that giving Apple $129 for OS X is more than you would have given them otherwise, but they don't see it that way (i.e. they see it as cannibalizing the sale of a Mac) and I tend to agree. The software, really, is just there to sell the hardware.

[tmm @ Jul 22nd 2008 7:00AM]

Sure, I can understand why everyone would like to buy a cheap box and install fine Leopard on it.

But this is short sighted and nonsense.

People: Stop regarding computers as "spec lists".
The OpenTech computers are a good example: the pure numbers look good and they are "cheaper" than Mac and have the certain appeal of gaming graphics card, so money of you seem to need, but:

It is just a box of standard components stuffed into an UGLY, cheao, case. You will not have the brilliant Service Apple offers, you will not have the quality build, the brilliant design, the reliability of the hardware and you will not have the superb software that is included with every Mac you buy.

Opening up Mac OS to other computers will be BAD for customers, not GOOD! I'm a Mac switcher and I don't want that to happen, because everybody knows the consequences!

Apple still gives you the freedom of choice: you can EASILY, more easy than on ANY OTHER computer from any other company, install another OS. They gone great length with Boot Camp to make it so easy that even my girlfriend can do that.

So, again: if you think the OpenTech is a value buy, please try to understand that computers are more than a list of components.

The iMac is not expensive, for example.
It's brilliantly designed, it's hardware is perfect for anything the target audience would do with it and then don't forget what you get in addition:
A brilliant OS that costs 129$ on the free market, the iLife suite which is also a brilliant piece of software and you get great service.

And who ever had the joy to use a Mac Pro and have to open it up and look inside knows why it is actually CHEAP compared what you get from PC companies as an alternative.

So please stop you "Monopoly" bullshit.
Yes, Apple RIGHTLY has the "Monopoly" on the stuff THEY MAKE!
As I have the copyrights on my work, too.

Holy something of something ... ! ;)

[jrb @ Jul 22nd 2008 7:16AM]

i find it amusing.

on one hand we have the apple supporters who claim that one of the reasons osx is so stable is because apple control the hardware, and that to open up osx to non-apple hardware would make it horribly unstable.

and on the other we have apple supporters who claim windows is crap and unstable purely because it's by microsoft, and microsoft can't write software.

Alas, what they forget is that osx is based on an open platform, that runs quite happily on any number of hardware, without driver or stability issues.

Of course, a good solution has already been found. Open up osx for installation on non-apple branded hardware, but limit it to certain supported components. Or are apple more-afraid that direct comparisons will be drawn between the openess of linux and windows to osx, and potential lawsuits that may come out of it.

Ultimately, i like that OEMs are trying to force the issue legality of apple 'clone' hardware, someone needs to argue about the legality of it all and force apple to play fair.
On one hand we hear that apple hardware is good value for money

[cheng @ Jul 22nd 2008 7:30AM]

You realise that that solution has been tried and failed miserably, don't you? Apple has already licensed clone makers before, and they never made enough profit to justify it. Regardless of whether you think that Apple is greedy for selling computers exclusively, they did not make enough money to justify clones.

[Chuckles McGee @ Jul 22nd 2008 8:09AM]

@Bradley

Apple wants you to think different. But not THAT different.

[fred @ Jul 22nd 2008 8:11AM]

"Sure, I can understand why everyone would like to buy a cheap box and install fine Leopard on it.

But this is short sighted and nonsense.

People: Stop regarding computers as "spec lists".
The OpenTech computers are a good example: the pure numbers look good and they are "cheaper" than Mac and have the certain appeal of gaming graphics card, so money of you seem to need, but:

It is just a box of standard components stuffed into an UGLY, cheao, case. You will not have the brilliant Service Apple offers, you will not have the quality build, the brilliant design, the reliability of the hardware and you will not have the superb software that is included with every Mac you buy.

Opening up Mac OS to other computers will be BAD for customers, not GOOD! I'm a Mac switcher and I don't want that to happen, because everybody knows the consequences!"

Rough translation:

We need to protect Apple's bottom line.

[Bob @ Jul 22nd 2008 8:43AM]

@ deyanimay

My a$$ if Apple doesn't have a BSOD equivalent! I get the GSOD (grey slide of death) all the time! You know? The one where you are working on your web development project and lose a couple lines of code, or lose the graphic(s) you were working on because this grey color slowly slides down your screen from the top and then says "please restart your computer." Oh no, that's not an error! That's just your Mac saying it's just for your good that you should reboot it, my bad!

[Frank @ Jul 22nd 2008 9:40AM]

Just remember what happened to Palm.

Palm Inc. made both hardware and software and where the market leader for a long time, until they decided to license the OS and the rest is history.

[Luigi193 @ Jul 22nd 2008 9:49AM]

I don't remember the last time I got a Kernel Panic...
When I do though... they freak me out... the grey, slowly, slimily dripping down your screen while you slowly realize you didn't save your work... scary...

The only time I get a Kernel Panic is when I accidently put in a PPC install disk into my Intel machine (yeah... not to bright sometimes...)

O and by the way, its not the GSoD... its the GSoPaD (Grey screen of panic and disarray)

[kal326 @ Jul 22nd 2008 10:02AM]

@tmm

Yeah, I may not have the brilliant design but I would have 99% of the functionality and more then 50% more money in my pocket spec for spec against an official Mac. Just face the facts a Mac is the same commodity hardware in a fancy box.

[kccboy2004 @ Jul 22nd 2008 10:52AM]

OK Apple and all you afficionado's PUT UP or SHUT UP.

You lot are like a bunch of kids on a play date, you won't let the other kids play with you toys !

PUT UP or SHUT UP:

If you are pissed that consumers are 'forced' to accept Vista on their HP/ Dell / whatever machines, then allow PC manufacturers to sell PC's with OSX installed.

Either Apple does this or you lot are going to have to SHUT UP with your whining.

Either Apple does this or I (who has used OSX extensively), and others (who have not), will remain convinced that OSX cannot compete function for function with Vista.

If you aren't going to run in the same race, with the same rules, then you are disqualified from the race. EPIC FAIL.

Pystar is the latest evidence of a company in denial over the weakness of the veil that appears to be just marketing hype concerning its product.

Microsoft XP, Vista = Genuine OS
OSX & Gnome = "Lipstick on the Pig"

Did Apple shares just drop 8.5% TODAY ??????

[Markarian @ Jul 22nd 2008 11:13AM]

I think one of the biggest reasons Apple doesn't license their software for use on other machines at this point is that they know that a large percentage of people who are smart enough to actually install an OS will usually get that OS of choice from isoHunt.

But Apple can afford to act this way. They do have a lot of money, but the only reason they have this warchest is because of the iPod. I hypothesize that, if it weren't for the iPod and iTunes, Apple would be in serious trouble financially. Apple's music and phone business is giving them enough cash to keep operating under their 1980s business model of proprietary computing.

One of the biggest things that has hurt Apple is that they've lost schools. When I was growing up, almost every computer at school was an Apple. Now schools are like "Shit, we can get gaming PCs for the kiddies for $350 a pop." So there's a generation that is growing up without Apples in the classroom. Apple thinks this is okay because they are betting that little Timmy loves his 2GB nano so much, that when he gets into high school he'll beg his parents for a Mac, the iPod of computers. Chances are, he'll be told "Okay, you can either have a Mac Mini desktop, or a bitchin PC laptop." I think the choice will be simple at that point.

[Agent42 @ Jul 22nd 2008 11:19AM]

@kccboy2004

What? Did you just call windows a "real OS," and compare that to OSX and ...GNOME?!?

You sir are the fail here. Anyone here should know that gnome is a GUI for linux. Other common ones include KDE, and X.org.

[Jeff @ Jul 22nd 2008 11:34AM]

holy cow, Bradley, you can't actually be that naive....

[ekwmin @ Jul 22nd 2008 12:55PM]

There is nothing unfair about Apple's practices. Hardware and software are allowed to be tied in. Your cell phone, your TV, your gaming console, etc. they all have software and the manufacturer are not obligated to share them. It's a good sign that there is a huge increase in demand for Apple to open up OSX. It shows that the public wants that OS more than ever. But I personally do not want that to happen for the same reason that tmm has cited. It'd be foolish to expect Apple to offer OSX to all PCs(becoming a software vendor) and not change their practices. Do you really think Apple will be selling OS for $129 and $199 for 5 license pack? It'll be more like $300+ for single license and $1200+ for family pack. They'll be adding senseless DRM and restrictive policies up the yin yang. It'll destroy the OS as we know it. And honestly, the very same people who refuse to pay for premium hardware/software are the very people that Apple refuses to do business with. This may be difficult to accept but this is their business model. Why would Mercedes Benz be interested in selling to people who are in the market for something like the Kia Sportage? It's just that their market.

[Benson @ Jul 22nd 2008 2:49PM]

@Agent42
> What? Did you just call windows a "real OS," and compare that to OSX and ...GNOME?!?

> You sir are the fail here. Anyone here should know that gnome is a GUI for linux. Other common ones include KDE, and X.org.

Well... You, sir, are the other fail here. Anyone here (who tries to point that out) should know that GNOME is a desktop environment for UNIX and X.

Other common desktop environments for UNIX+X include KDE, Xfce, and ROX.

Common UNIX implementations include GNU+Linux, (Free/Net/Open)BSD, and OS X. (And even Windows NT + Cygwin...)

Common X servers include X.org, XFree86, X11.app, and Cygwin/X.

[loosely_coupled @ Jul 22nd 2008 3:02PM]

Pentium D? Would that even work? Apple just started using Intel processors when Yonah (aka "Core Duo") came out, so all processors support SSE3 or more! I don't think Pentium D has SSE3?!

[Benson @ Jul 22nd 2008 5:42PM]

Wow, took me 20 whole seconds to google SSE3, click the top link (Wikipedia) and see Pentium D in view on a (non-authoritative) list of processors supporting SSE3.

http://en.wikipedia.org/wiki/SSE3

Anyone can edit it, so maybe it's wrong. But it's definitely easy...

[LarryLarryLarry @ Jul 22nd 2008 7:08PM]

Is this "news item" an example of what we can expect under the new editor? Because it's BY FAR the biggest load of horseshit flamebait I've ever seen on this site. By a mile.

I'm typing this on a Mac Mini so I am not an Apple hater at all. But this shit is hardly what people come to Engadget for.

You'll figure this out or you'll kiss your new editor job goodbye, because you'll destroy the site's popularity. Get a clue or get a spatula. I want extra fries with that, Josh.

[Joshua Walters @ Jul 23rd 2008 6:00PM]

@deyanimay

Ive gotten fatal errors on OSX.

Even the most stable operating system, under optimal circumstances, can still crash.

[Bryan @ Jul 23rd 2008 11:57PM]

Apple has a BSOD. It's called a Kernel Panic.

[Paul @ Jul 22nd 2008 6:14AM]

apple doesn't play around when it comes to OSX on other machines
once OSX starts going on non-apple machines, the quality will diminish

[kccboy2004 @ Jul 22nd 2008 8:17AM]

@Paul,

This really is poor arguments. Here are the facts for me that speak for themselves.:

1. Apple has a HUGE markup on their PC hardware.
2. Apple obscures this obscene markup by insisting that the OS be only installed on Apple hardware.
3. Apple can't really compete with Microsoft on the software front alone, so they try to distinguish themselves on the hardware front.

BUT;

a) Windows, for the general public and the business community is far more suitable.
b) Businesses want the freedom to choose the hardware that they want.
c) Large Businesses need software that has a long life cycle (more than 5 years). It takes around 2 years for a large business to complete software testing. Sometimes it is not worth changing at all. Even security updates and patches need testing before release. There need to be a cost benefit for a change in OS. Miscrosoft provides that long life cycle which businesses are delighted with. XP even through the downgraded VIsa is the "DARLING" of businesses. They love it. It works. On the other hand Apple issues paid changes to OSX every 12-18 months.

I have used OSX and Windows porducts both. I happen to prefer Vista over XP and XP over OSX. (I can enumerate the differences). I don't dislike Apple, and when I have to go to the Genius bar to get my PC fixed my 3.5 years old daughter loves to play games whilst sat on the little stubby italian bean seats.

But I really do not care for the polarised and bigotted attitudes of Apple fanatics who vehemently defend Apple's behaviour as a company.

From my perspective, Apple is trying to thwart the market of technology by trying to control all of the inputs (hardware and software), when in a free technological market these should ride free.

The components in an Apple PC are IDENTICAL to a Windows on Linux PC. The only differentiating factor is the software.

One last point, if Apple did release OSX from its bondage and Dell was free to sell their PC's with it installed, would that satisfy the Appe afficianado's who claim that Vista's sales are inflated because PC's come installed with it by default ?

Do you think that businesses would start to choose OSX as the OS of choice ?

Well.... let's find out. Bring it on Steve.



I think that Apple's poor performance in the market's today, reflecting their failure to meet their targets this year, will to some extent bear this up.

[Kelmon @ Jul 22nd 2008 8:52AM]

@kccboy2004

Are you suggesting that vertically integrated companies should be illegal?

While I do tend to think you talk a load of rubbish at times, you are quite correct that OS X is not suitable for large companies due to single supplier and fast update times. There's a lot of people in the Apple community that seem to think that Apple is "ready for the enterprise" and that's just nonsense. Allowing other companies to build Macs would address the first problem but I don't see the demand from business to be able to run on Macs to begin with. The Windows platform is so much better for business, and Apple has very little to compete against that. So, even assuming that Apple did allow other companies to bang out cheap Macs, the business community would be unlikely to adopt it because the software/services from Apple lags far behind what Microsoft provides. Credit where it is due, Microsoft does a much better job for business than Apple does.

Anyway, due to this Apple might as well stick with the status quo since they won't make more money doing something differently. The vertical business model works for them and changing that would compromise the entire enterprise.

[John @ Jul 22nd 2008 9:48AM]

Businesses want the freedom to choose the hardware they want? Last I checked, not a single person, save the IT department, gives 2 shits about what makes their computer work. As long as it opens Office and Internet Explorer, they're happy.

I agree with you that Windows computers are better for large businesses, but think about what happens when you use a Windows computer at work. You can't download anything and you can't install any programs, simply because people really can't help but to install as many viruses as possible while having internet access. Enterprise Windows networks require a full-time IT staff to constantly update and maintain the servers. Sure, Windows 2000 (XP? Please) is a dream to use when you have a full-time maintenance crew and you're forbidden to do anything other than open Outlook, Word, Excel, Powerpoint, Acrobat Reader, and Internet Explorer, but for small businesses that can't afford servers and IT departments, Macs are the way to go.

[jkeilwilson @ Jul 22nd 2008 2:01PM]

@kccboy2004 - As an APPL stock holder, I just thought I'd point out that Apple not only met their targets for the third quarter, they absolutely blew them away. The drop in the stock happening today is generally ascribed to the fact that Apple's guidance for the fourth quarter is about 20 cents per share below many analysts estimates. In fact, sales of Macs are up 41% over Q3 2007. Yet the stock is down sharply at the open, and I'm definitely bummed to see that :(.

[Kelmon @ Jul 22nd 2008 10:52AM]

Well, the IT department might not care which computers you use but your Finance organisation will because they will have been tasked with getting the best deal. Typically this will involve a bid process based on your company's requirements. Needless to say, such a process is difficult to achieve if only one manufacturer makes computers, which might as well be the case if you are considering a move to Apple. If a company "goes Mac" then they effectively must dance to Apple's beat, and that's not an option for many. If it were easier for a company to migrate from/to Mac to something else (probably Windows), then the single manufacturer problem becomes less of an issue. But currently this is not the case and this is why Apple is not an option for a medium-/large-sized company.

Small companies can do what they like, and I can see the value of Macs there if they are low maintenance. However, even a small company should consider what happens if they get bigger, assuming they have time to think...

[kccboy2004 @ Jul 22nd 2008 11:31AM]

@Kelmon,

Wow, again I think that you make some good points. Stunning day today.

I am still left with the same points over and over again. I have held senior positions in the IT industry for many years now, and yes, for my own amusement sometimes I talk a load of crap. Generally, the crap is a knee jerk response to the bull that I read. (Even spell/grammer checks are not considered worthy).

My points that you 'seem' to agree with are that Apple needs to protect itself from open competition by distinguishing itself on the Hardware front, and making creating an illusion of hardware superiority on this front.

But get this, and this is the real point,
1. there truly is no difference between the Hardware
2. the home consumer is using the same applications. (Firefox etc) (Have you used igoogle docs - fabulous ?)

Therefore the desktop and the navigation to those app's is all that is important. For this Vista Home premium ($99) plus 2GB Single DIMM RAM ($50) is all that is required. (I LOVE my 1.6 GB Atom based pc I built, running Vista 64). As you know already 3 home pc's running Vista 64 - not a single crash or hang since I purchased (over 6 months ago)

I will never buy a personal copy of Office ever again. Microsoft is out of this in the (discerning) home consumer market as far as I am concerned. (iGoogle docs / Lotus Symphony / Open Office ).

As far a business goes, you get the point too and you make the valid point that busines wants choice in its suppliers.

I welcome and encourage Apple to desist with this policy, so that we can see Microsoft challenged on all fronts. This will be good for all consumers and businesses alike.

If Apple wwaits too long then it will lose the business battle to Linux and the like.

**there will never be peace between Apple accifionado's and the rest of the IT community whilst THEY are Shitting in our shoes and WE are pissing in their Bovril." (Billy Connolly).**

[Kelmon @ Jul 22nd 2008 1:00PM]

Apple doesn't have the "platform" to compete with Windows in the enterprise. If this was to happen then Apple would have to invest significantly in developing the Mac platform so that it can substitute for Windows, and that will take many years because Microsoft has such a huge head start. Given the details known so far about Snow Leopard, it seems more likely that Apple are trying to position the Mac as a "good citizen" in the Windows world. I honestly don't think Apple have any intention of competing in this area.

They've got an apparent winning formula at the moment and they won't change that until growth slows.

[Markarian @ Jul 22nd 2008 2:22PM]

I agree with both of you, but I do not fully agree that consumers on Apple are using the same applications, per se. Apple markets its platform on the basis of "lifestyle" applications, like iLife, iTunes, Photobooth, iWork. Apple sells the computer by saying "Look, we know you're drawn in by the mystique and the prettiness of our interface. Now see how we can be a single provider for everything you do." Their goal is to be an end-to-end entertainment company, with productivity ranking an obvious second. Only when it comes to the arts does Apple heavily emphasize how much work you can get done on a Mac. The "I'm a Mac..." commercial with the PC doing spreadsheets and the Mac being like "I'm Fun!" is an interesting portrayal which really does seem accurate. Personally, if I was looking from the outside of the IT world I'd be like "I'll choose the pleasant guy in the suit with the spreadsheet, because he looks like he has a job, a high-paying one at that. The Mac guy looks like an unemployed slacker. Given the fact the Mac costs twice as much, I'll go with the productivity tool instead of the pretty toy."

Mac only markets application compatibility and availability in the context of Bootcamp or virtualization. So, interestingly enough, Apple tacitly admits that there really isn't much third-party software for the Mac.

[Kelmon @ Jul 22nd 2008 3:28PM]

"Mac only markets application compatibility and availability in the context of Bootcamp or virtualization. So, interestingly enough, Apple tacitly admits that there really isn't much third-party software for the Mac."

Disagree. Boot Camp and virtualisation provide a safety net to those considering a switch. Unless you are prepared to migrate all your applications when you switch (a potentially expensive endeavor, particularly if any of it is custom written), you need a way to maintain existing software until you can complete your migration over time.

With respect to third-party software, how much do you need? As long as there is at least one good application that does what you need then that is enough.

[TRLK @ Jul 22nd 2008 6:17AM]

Is it really illegal to advertise that your computer can run OS X? Really?

[deyanimay @ Jul 22nd 2008 6:19AM]

Monopoly anyone?

[xValentine @ Jul 22nd 2008 6:27AM]

It is illegal to sell a PC that runs OSX since OSX is only legal when you purchase it and install it on a Mac hardware,

This is as bad as an Advertising Company that uses After Effects and they don't have a License or they the software is pirated/copy.

[LondonConsultant @ Jul 22nd 2008 6:36AM]

I wonder why so many people incorrectly think that legal proceedings can only be brought if something is "illegal"... Check the differences between "unlawful", "illegal", "criminal", and "lawsuit".

[Geezer @ Jul 22nd 2008 6:48AM]

Yeah, a monopoly with a 3% world wide market share. Go figure!

[ArcticFox @ Jul 22nd 2008 6:43AM]

It is not illegal to install OSX on a machine other than a mac, go read up what a EULA is, its not legally enforceable, the extent of what Apple could do if someone broke the EULA is refuse to support them.

Getting a little sick of people saying its Illegal when it clearly isnt.

[Kelmon @ Jul 22nd 2008 6:58AM]

@ArcticFox

I think the court case with Psystar will prove this point once and for all. If it turns out that Apple can't legally enforce the EULA then the floodgate for Mac knock-offs will probably blossom and Apple will be forced to allow it explicitly. Heck, it might even lead to Apple licensing the OS to real hardware manufacturers since Dell in the past have indicated that they'd like to sell systems running the Mac OS.

I'm not a lawyer, but I can't see Apple taking a case to court that they know they can't win unless they are planning to force Psystar into an out-of-court settlement due to the costs of defending the case.

[Adam @ Jul 22nd 2008 7:11AM]

MS does this and they're evil, but it's fine for apple. Run our great OS, it's way better, but you'll have to buy our computers and our spare parts. We'll also make it much easier for you just to buy our phones and MP3 players while you're there.

Of course it's easier to develop an operating system for multiple hardware platforms, but every other vendor seems to manage it. Apple's tie in sale model stinks they are so anti-competitive it isn't true and the only reason it isn't an issue is because they have such a porr market share.

[John @ Jul 22nd 2008 7:35AM]

I'm pretty sure Gucci has a low market share compared to the zillions of wal-mart brand clothing items around, but it doesn't mean that they're not 1) successful, 2) well-received, and 3) rolling in an obscene amount of cash.

If Apple sold $200 computers to Joe Schmoe at circuit city and had a low market share, yes, that would be bad for them. Instead, they've marketed themselves as a luxury brand, where a low market share actually means that only an "elite" few can purchase their products.

[Kelmon @ Jul 22nd 2008 7:48AM]

@Adam

It's perhaps worth reiterating that Microsoft Apple, or vice verse. Microsoft licenses their software to run on hardware not made by them, mostly because they don't make their own hardware (well, at least not PCs). Just because Microsoft does this does not mean that Apple has any obligation to do so. I'm not hearing calls for Garmin to allow other GPS manufacturers to let them run the Garmin software on their devices, and this is the same thing. There is nothing anti-competitive going on here - if you want to buy a computer from someone other than Apple then there is no barrier. The only exception here is that the other computer won't be running OS X. As with anything else, any manufacturer has full right to be the exclusive manufacturer of their own products.

The only way that this becomes a legal issue is if Apple achieves close to 100% market share by forcing out the competition (e.g. refusing to supply hardware to a reseller if that reseller sells computers by anyone else). That would be anti-competitive, but then we also know that this scenario will never happen.

The iPod/iTunes thing is something else. We're still waiting on the EU Competition Minister to rule on that and the result should be interesting.

[Kelmon @ Jul 22nd 2008 7:56AM]

Ah, crap, Engadget's comment system removed the greater-than/less-than characters from my comment. The comment makes more sense with the first sentence replaced with:

"It's perhaps worth reiterating that Microsoft is not Apple, or vice verse."

[Markarian @ Jul 22nd 2008 3:11PM]

I think the problem is that when Apple used Freescale chips, they were, in fact, their own luxury brand. The machine was truly unique and designed to only run MacOS. Now the man behind the curtain is visible, and consumers are saying "Heyyy....now they're just using cheap PCs in pretty cases! I could run this same software on my Dell!"

It's hard to be a luxury brand when people know that what you're selling is an artificially locked-in piece of software. Consumers are a lot more educated and no longer look at a computer as a machine that is the sum of its software and hardware, like a cellphone or DVR. A lot of people are just in love with OSX, but do not want to pay a premium for a computer that is a very poor value hardware-wise, just so they can run the software they want.

Apple consistently uses the argument that it's the unified experience of hardware and software that makes the OS so great and so stable. But the fact of the matter is that stability issues are, as far as marketing goes, a thing of the past. XP, with its NT kernel is rock-solid compared to all the versions of windows that came before it, and the BSOD arguments now just seem old.

I don't think OSX is a more stable platform than XP. Vista, who knows? But I highly doubt Apple codes all of their drivers themselves, so they still have binary blobs they have no control over, going into their OS, just like Windows. Apple needs the freedom and flexibility to change hardware configurations at will and that's the dirty little secret that deflates their argument. Is it Broadcom or Atheros? Hitachi or Seagate? GMA 950 or GMA900? You don't care, all you know is that you have a "Macbook." But the reality is, if some minor tweaks were made, like in OSX86, Apple could become just as viable a desktop platform for PCs as Windows. The fact that it's the only version of UNIX that doesn't require command-line configuration at some points says a lot, and is quite an achievement on Apple's part.

I think that Apple could make some serious money licensing clones, or even just selling its OS. But the fact is that a) Steve Jobs is an asshole and runs the company the way he wants, even if he is possibly denying the stockholders higher earnings and B) Apple is probably terrified that their fiercely loyal userbase would suddenly be enraged that their shiny status symbol was instantly devalued when OSX is released for PCs.

For years, Apple was content to cater to the rich and act like the luxury brand people think they are. But they came out with the iPod for super cheap and suddenly, they've got the unwashed masses beating down their door, demanding more Apple experience, at iPod prices.

I used to work for AppleCare, doing Mac tech support. And the vast majority of the people who called were Baby Boomers or retirees. The younger generation simply cannot afford them, or just don't care and want to actually play games on their computer. Oh, and half of them were from New York.

[Kelmon @ Jul 22nd 2008 3:39PM]

Again, what you propose is corporate suicide. While the profit margins are declining in the business, Apple made about $3.7 billion during the last quarter from the sale of Macs. Do you really think they would make that kind of money by attempting to license the OS to other manufacturers? Apple doesn't have an enterprise solution, so that market won't be interested. What you are left with are home users and small businesses, each of which seem quite happy to buy Apple today. There's absolutely nothing to be gained from switching to a software company model if you don't have a complete software portfolio.

On a side note, I'll just say that dodgy drivers on the Mac are just as bad as those on Windows. Once you let someone else's code play in your kernel you are exposing yourself to problems and OS X is no different. Don't talk to me about Logitech's mouse drivers...

[BluesK1d @ Jul 22nd 2008 4:36PM]

@John
Only Gucci products are higher quality. The analogy might work if the Gucci products were actually made from the identical brand name components as the Wal-Mart special and then slapped with a fancy new logo and an 11tybillion% markup.

[gad get @ Jul 22nd 2008 6:19AM]

Where are these supposedly "crappy specs," anyway? The ones I see at the other end of that read link look pretty good. But it's all right, I understand if you got a bit carried away with the hating.

[johnmgbrowniii @ Jul 22nd 2008 6:21AM]

Why the weird cheerleading for Apple crushing some little company that's not breaking any RATIONAL law at all, by selling a machine I COULD install OSX on, Paul? If the law bans selling something like this, it is an idiotic law which should be changed. And you should just pass on the news about the machine without being so nasty to them...