advertisement
Forums

The Forum is sponsored by 
 

AAPL stock: Click Here

You are currently viewing the Tips and Deals forum
March 8, 1997: Apple gets out of licensing deal with clone-makers via Mac OS 8
Posted by: pRICE cUBE
Date: March 13, 2020 07:38PM
[www.cultofmac.com]

March 8, 1997: Apple renames the forthcoming Mac OS 7.7 update, calling it “Mac OS 8.” It’s more than just a name change, though: It’s a sneaky sucker punch that ultimately knocks out Mac clones.

Early 1997 wasn’t a good time to be an Apple watcher. Despite the return of Steve Jobs, Apple continued losing money hand over fist, suffering through some of its worst financial quarters of all time.

One big challenge Apple faced at the time was the existence of clone Macs, which the company originally viewed as a way to save itself from Microsoft’s Windows 95 juggernaut. Starting in December 1994, Apple signed a number of licensing deals with companies like Power Computing and Radius to produce Macintosh-compatible computers.

Apple CFO Fred Anderson worked out that the clone Macs strategy actually cost the company money. The $50 fee Apple received for every clone Mac sold proved far too low. It failed to even recoup the money lost when a person chose a clone over an actual Mac.

Cupertino could not get out of the disastrous agreement if it kept updating System 7, the Mac OS licensed to clone-makers. However, if Apple released Mac OS 8, it could argue that the deal became null and void.

Apple made the switch, calling the new operating system Mac OS 8. Then Cupertino began negotiating new, more favorable terms with third parties licensing the Mac operating system.
This inevitably led to consternation from Apple’s licensees. On August 5, 1997, Apple became locked in a standoff with Power Computing after the official launch of Mac OS 8. (You can read more about the feature set of Mac OS 8 here.)

Apple eventually agreed to acquire Power Computing’s customer list and Mac OS license for $100 million in AAPL stock and $10 million. That covered all Power Computing’s outstanding debts and costs. The clone-maker closed shop for good in early 1998.




Ways to improve web conference image and sound quality. [forums.macresource.com]


Options:  Reply • Quote
Re: March 8, 1997: Apple gets out of licensing deal with clone-makers via Mac OS 8
Posted by: neophyte
Date: March 14, 2020 08:50AM
Rember the ad in Macworld?


Options:  Reply • Quote
Re: March 8, 1997: Apple gets out of licensing deal with clone-makers via Mac OS 8
Posted by: Will Collier
Date: March 15, 2020 01:10PM
I loved my clones. In those days they were way, way ahead of the underfeatured crap Apple was shoveling out the door at premium prices.
Options:  Reply • Quote
Sorry, only registered users may post in this forum.

Click here to login

Online Users

Guests: 144
Record Number of Users: 186 on February 20, 2020
Record Number of Guests: 5122 on October 03, 2020