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June 16, 2008

Apple could face a massive virtualization of its OS on PC's.

This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Joe Weingarten
Executive Director, Macintosh Reseller Association
Implications: The concept of virtualization is the simulation of hardware to allow an unmodified "guest" OS (one designed for the same CPU) to be run in isolation. Every since Apple moved to Intel processors people have been toying with the concept of running the Macintosh Operating System on machines other than Macintoshes. Since Apple have a much higher price tags what would happen if someone can accomplish this task?

Analysis: In April of this year Psystar announced the development of a $399 Macintosh clone (see: http://gizmodo.com/379717/mac-clone-maker-psystar-says-apples-eula-violates-monopoly-laws-wants-to-challenge-it-in-court)
by loading a valid copy of the Mac OS on an Intel based machine. So far Apple lawyers have said nothing. Now a company EFiX  is planing a release on June 23 of a hardware add-on that will allow you to install a legal copy of the Macintosh OS on a regular PC. If the Apple legal team does not stop this there is the protential for a drop in Macintosh hardware sales.

Look at the basic numbers: A PC is 1/2 to 1/3 the price of Macintosh, A low end MacPro with a 23 inch screen is $3198, while a similar Dell with a 24 inch screen at Costco is $1399.00.

In the notebooks area I had a problem finding a notebook to compare on the low end to Apple's 13 inch notebook which is $1099. Dell, HP Acer didn't have any that small. The prices for most low end were $899 or less and even down to $499. for an Acer 15 inch model.

The cost of the MAC OS is $129.00 so even if this "dongle" is $199 could many people who were thinking of buying an Apple opt out for this lower cost alternative. If the dongle / OS combination is effective and works as if the end unit were a Macintosh, I firmly believe Apple will start to lose a great deal of sales.


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