AOL Money & Finance

OpenComputer posts

Feed

Mac clones -- good or bad for Apple?

So the Wall Street Journal and a few blogs reported that Apple Inc. (NASDAQ: AAPL) said Tuesday it has filed a suit against Psystar Corp., a Florida-based company that makes and sells computers that run Leopard, Apple's Macintosh operating system software. The suit was filed July 3.

Apple seems to think that Psystar is infringing its copyrighted computers as Psystar's $600 Open Computer "violates an Apple policy that forbids people from installing Apple's Macintosh software on anything other than an Apple-labeled device."

But according to AppleInsider, "A representative for the company, identified only as Robert [argues] that the Mac OS X end-user license agreement, which prohibits third-party installations of Mac OS X on non-Apple hardware, stands in violation of antitrust laws." Rodolfo Pedraza, Psystar co-founder said in the past to the Journal that his company pays for every copy of the software it sells.

I understand what Apple is so worried about. If anyone remembers the IBM Clones of the 80s, they also remember that very quickly IBM has lost the leadership role in the market for IBM PC compatibles by 1990. It wasn't the end for International Business Machines Corp. (NYSE: IBM) as it derived a considerable income stream from license fees. But Macs are not just hardware, they're software too, and we all know what operating system has dominated those PCs. Microsoft Corporation (NASDAQ: MSFT) Windows has become the global leader.

So other than the fact that Apple has different rules on what can run on its computers, iPods and iPhones, including the strict iTunes/iPod relationship, seem strenuous to the extreme and definitely borderline violating some consumer protection laws, it's also possible Apple may be missing on a great opportunity here. The Journal mentions that No. 2 computer maker Dell Inc. (NASDAQ: DELL) is interested in making such Apple OS capable computers, meaning Apple see sales increase ten fold and capitalize on licensing fees as well as software sales.

Then again, knowing Jobs' strict attention to details, his Alpha personality and controlling nature, I'd say that's likely never to happen.

New Apple clone: A Mac for $400?

A company called Psystar has announced that it is selling a $400 computer that can run Apple's Leopard operating system. Psystar is referring to the machine as the Open Computer (a change from the original name, Open Mac) and claiming that it is "The Smart Alternative to an Apple."

I doubt that Apple is very happy with this development, and I suspect that Psystar probably has a few messages from Apple's lawyers on its answering machine. As Wired's blog points out, Apple's end user agreement states that its software can be used only on Apple hardware. Apple has a long and rocky history with clone hardware producers, and has aggressively sought to maintain its monopoly on both its excellent software and the sleek machines it builds to run it.

And that's a shame, because a lot of people would like to buy a Mac but are put off by the price. The most basic Mac Mini is 50% more than the Open Computer, despite being slower and having less memory. Of course, I can't say for sure that the Open Computer works as well as a real Mac. But I hope that Apple will get the message that there is demand for cheaper computers that can run its software. It needs to either produce its own cheaper machines -- such as the eMac I'm using to type this post but that is no longer available -- or allow clone manufacturers to produce on their own. In the long run, it can only help Apple increase its market share.

Symbol Lookup
IndexesChangePrice
DJIA+73.0010,270.47
NASDAQ+18.862,167.88
S&P 500+6.241,093.48

Last updated: November 14, 2009: 10:56 AM

BloggingStocks Exclusives

Hot Stocks

DailyFinance Headlines

Latest from BloggingBuyouts

WalletPop Headlines

AOL Business News

BioHealth Investor Headlines

Sponsored Links

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance