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Apple should just send in the clones




The travails over the past week or so of Psystar - the Miami-based startup which said that it would offer Apple's latest version of OS X, "Leopard", on generic boxes - have been enormously entertaining. The way that the company apparently moved from place to place (judging by its website) made me wonder if it was being run by one of those impromptu teams from The Apprentice - with one bunch haring around town trying to buy up copies of Leopard at full price from shops while others head down to Quik-E-Computer to buy some low-priced computer chassis, leaving someone else back at the office, swearing at the computer. And then all being called back into the boardroom to be told they're an absolute shower.

As I write (on Tuesday), nobody seems to have received any computers from Psystar, more than a week after it said it would have them out the door in 48 hours. Still, patience is a virtue.

But even if Psystar's adventures are some sort of bizarro version of everyone's favourite business game, they have demonstrated one thing very clearly: there is huge pent-up demand for cheaper Apple gear. Forums abound with people saying: "I'd love to buy an Apple machine, but I just can't afford it. And the ones they're offering don't do what I want." The customers clearly want to have a wider choice, especially at the bottom end. And in the middle, actually, where they want a midrange tower rather than the supercharged Mac Pro towers that Apple offers.

The ironic thing is that too much choice nearly killed Apple. When Steve Jobs returned there, more than a decade ago, he proclaimed himself mystified by its bewildering range of desktop computers - the Performa, the Quadra, the LC, the Power Macintosh. "What's the difference?" he asked, and binned the lot - to be replaced by the "grid of four": portables and desktops, for pros and consumers. He also killed the clone makers that Apple estimated had taken 10% of its business.

But if people want a bargain-basement machine then Apple is leaving money on the table by not offering it. If enough startups make cloned Macs, Apple gets just $129 per machine (the price of Leopard at retail) - or perhaps only the wholesale price (which, Sir Alan would tell you, is probably two-fifths of the retail price, or $51.60). Apple's 10K stock filing shows that its net sales per computer sold are $1,532 (compared to $181 per iPod sold). We can't be sure how much profit each generates, but it seems a fair assumption that it's more than $129, or $51.60. Letting people make clones is financially bad news for Apple. With more than $18bn in the bank, it could afford to shave its margins to stave off cloners.

Now, mea errata. In previous columns here, I've complained about the instability of OS X 10.5, aka "Leopard". Turns out I was wrong. The machine I'd installed it on had a known memory board fault. Once that was fixed, the problems vanished. ("D'ya think it was tin whiskers?" asked a colleague. Well, it might have been, but how would we know?)

That though raises the question of how many other people who've had problems with Leopard actually had problems with Apple's hardware. I realised that every Apple my family has owned has had some problem - two failed logic boards, one broken Firewire port, one cosmetic crack; and a work colleague just told me of his wife's bust MacBook. Yes, a logic board again.

On consideration, Apple might not like clones. But it might be that everyone else really is ready for them. Someone call the Apprentices!


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