Mac news from outside the reality distortion field
Type Size  -  +
April 14, 2008, 7:39 am

What’s wrong with a $399 Mac?

It’s been almost a decade since Steve Jobs drove the last of the licensed Mac clones out of business, but that hasn’t stopped bargain hunting users from trying to get the Mac experience without feeding Apple’s hefty profit margins.

Persuading a generic PC to run OS X isn’t that hard to do. Ever since Apple (AAPL) switched from PowerPC to Intel, hackers in the OSx86 movement have been playing cat-and-mouse with Cupertino, writing a series of patches and emulators to get around the Mac’s Extensible Firmware Interface (EFI) and other built-in barriers to cloning.

But the $399 Mac compatible computer that hit the market this week is another matter. It’s a cease-and-desist order waiting to happen.

The manufacturer is a small, Miami-based reseller of Voice-over-Internet, security and networking systems called Psystar. Its website invites you to order a PC “capable of running unmodified OS X Leopard kernels” with the following specs:

  • 2.2GHz Intel Core 2 Duo
  • 2GB of DDR2 667 memory
  • Integrated Intel GMA 950 Graphics
  • 20x DVD+/-R Drive
  • 4 USB Ports
  • 250GB 7200RPM Drive

Basically, it’s a Mac Mini with twice the memory at half the price. So what’s not to love?

The problem for Psystar — and anyone counting on them to stay in business and provide the support they promise — is the second part of their offer: If you buy a copy of Leopard at the same time, they promise preinstall it for free.

That’s where Apple’s lawyers come in. Leopard’s End User License Agreement (EULA) is pretty clear. Section 2A reads:

This License allows you to install, use and run one (1) copy of the Apple Software on a single Apple-labeled computer at a time.

And that’s what’s wrong with this $399 Mac.

DEFINE: “apple labeled” ?

you get two, LABELS with MOST apple items, they are “” apple labels”", so in theory not putting thoes stickers, puts you in violation of contract.

NOTE: they do NOT say manufactured or BRANDED, both would imply, factory certification, and owned, or specifically from them.

i find it curious they do not do this when most others will say one other former words.

PUT A APPLE LABEL on it, then you have a apple pc right?
a good lawyer will argue this.
i mean why use “label”, not at “for use only on APPLE computers”

Posted By Zach, newark, delaware : May 18, 2008 2:01 am

It was Leonardo DaVinci that stated that simplicity is the ultimate sophistication. It is not that mac users are dummies, that is a misnomer. Mac users are people who want to do things with their computers other than figure out how they work.

Are you saying that people who can’t wire a house should not be able to use power? Or that those who have no idea how to employ metallurgy to accurately use a shovel? How about those that have no idea what kerning is creating a blog post?

Posted By antieMcDisser, Lawrenceville, GA : April 29, 2008 4:20 pm

Apple is not Linux or FreeBsd for dummies. Apple is for dummies. Dummies who don’t want to think or know anything about their systems and want someone else to think for them. They want someone to tell them what software to use and what hardware to buy. Apple is the Anti-Linux. Linux is about choice apple is corporate control.

Posted By macdisser,bronx,N.Y. : April 21, 2008 6:37 pm

Brilliant. All the Mac elitists are up in arms. They realize, on a subconscious level, how inflated the prices are, and what Mac really sells, is atmosphere, marketing, and elimination of variables that PC’s encounter, via brand competition.
The Leopard comment may be totally false. It would be the only way to claim the company was fraudulent.
People cannot stand to put a lot of stock into something and then have it questioned. They will swear they were right, forever. (see: organized religion) .

Posted By Ozneb Diaz, Paola, Kansas : April 19, 2008 1:48 am

Apple actually doesn’t make that big a profit off of the hardware, except for the iPods. Its funny, a company that started the PC business now makes more money from selling musical toys instead of computers.
MS got it right, just make the software and let sombody else make the hardware and lo, you are a multi-billion dollar company and your closest potential competetor is making musical toys and has less than 5% market share. Bill Gates must laugh & laugh every time he sees an Apple…
(Untill his Vista pc freezes and has to be rebooted… again & again…and again…)

Posted By Dana, Santa Rosa, CA : April 18, 2008 2:19 pm

This company is not legit. Recent investigations have shown the people behind this to be disreputable, and the “business address” to be bogus.

Posted By Willo, San Francisco, CA : April 17, 2008 7:08 pm

1. Apple is not “Linux for dummies”, it’s FreeBSD for dummies. Get your OS’s right if your going to act superior.

2. FreeBSD DOES NOT and WILL NOT look or act like a Mac without a lot of coding. Linux can’t even catch up with Windows in ease of use. How do you expect it to catch a Mac?

3. Linux and FreeBSD are great server and geek (me included) operating systems but I wish people would stop trying to get non-technical people to use it just give them too many problems and then I get a bunch of calls…

Posted By Ray B. Chicago IL : April 17, 2008 4:40 pm

What’s wrong with a $15K Porsche?

Just ask Ford to take a Mustang, steal Porsche’s software out of their ABS and Stability Control systems and so forth, and slap a new badge on it.

Its one thing for an individual in his basement to “Hot Rod” a system and (cough) “bend” the license agreement. Its another thing if he tries to make a buck by selling them to the public: that’s damaging another person’s brand.

Besides, its not really a $400 clone, since it doesn’t include the OS in that price. By the time you add that in and then go seek out Apple-supported discounts, the price difference is a whopping $18.

-hh

Posted By -hh Denville NJ : April 16, 2008 8:40 pm
Posted By Russ, Mesa, AZ : April 16, 2008 6:21 pm

If we are going to bring linux into this discussion please pick a better distribution than Fedora and Ubuntu. Download and install Slackware or Arch and tell both windows and OSX to take to take a flying leap.

Posted By macdisser,bronx,new york : April 16, 2008 5:55 pm

not to get into the whole OS debate…

I know what I like (yes.. typed from a powerbook)

If you do purchase this machine here’s what pystar says about OS X updates…

“Can I run updates on my Open Computer?
The answer is yes and no. No because there are some updates that are decidedly non-safe. Yes because most updates are safe. It’s best to check the web for this information but when in doubt don’t update it. You may have to reinstall your OS X if it is a non-safe update.”

Updates from Apple that are “non-safe”

A clone will never thrive without being supported by Apple… you can put it in the closet with your bricked Iphone.

Posted By Steven, SF, CA : April 16, 2008 9:47 am

If Apple’s “service” and “hardware” are so superior why don’t they just embrace the competition? A sure way to take market share from Microsoft is to license your software to cheaper hardware manufacturers. Can you imagine how much market share Apple would gain if you could buy a mac-compatible from Dell or HP.

Posted By Ethan, Pocatello Idaho : April 15, 2008 10:35 pm

http://fedoraproject.org/

Just follow this link and stop arguing.

Posted By Silicon Holler, KY : April 15, 2008 10:11 pm

apple is Linux for dummies….. Linux is free…. open for your change….

Posted By mn : April 15, 2008 6:35 pm

Asher Pat: if you learned to type, and sound educated the world might listen to you. But you don’t, so please don’t post such rubbish.

Posted By Ryan, Orlando Fl : April 15, 2008 5:32 pm

OS discussions are like religion debates. Everyone has an opinion and there’s is the only right one.

Posted By Tom, Cape, MO : April 15, 2008 3:11 pm

The biggest Taboo

this is the biggest tabboo of the Apple cult. Nobody wants to talk about it. In 2006, I asked the question on “Mac Forums” – “Parallels in Reverse” why cant I use a cheap PC platform to work with Apple OS (search my name on MacForums). After many posts of replies that this was “illegal” the moderator “closed” the thread because the discussion was “going nowhere” or something like this – which is strange, cos there waere many replies.

First, I wanna know what is “illegal” about this, esp if one buys the OS-X for full money and runs it on Sinclair-81? I guess that it’s not “illegal” ather it is not honouring an implicit contract b/w the purchaser and the Apple empire, but this is not “illegal”.

Anyway, the cult members are of course ambivalent about this. On one hand, it will increase the penetration of the “truth”, on the other, it will cut the whole premise of “Apple being special” and reduce the profits of its idol.

Well well.

Posted By Asher Pat, London, UK : April 15, 2008 4:39 am

The Apple clone may be right for those who seek a bargain, but nothing beats a real Mac. Yes, it can be pricey, but nothing beats the support you receive. No wonder Mac users are so obsessed with their Apples. You get what you pay for.

Posted By Boris McCubbin, Knoxville, Tennessee : April 15, 2008 4:20 am

Forgive my stupidity but if Psystar were to put the word apple on the box without using the “Apple” logo or the “Apple” fonts then this would circumvent the licensing agreement right? it would be an Apple-labeled machine but it would not be (nor is it trying to be) an “Apple”

Posted By Anonymous : April 15, 2008 3:48 am

John D. – The idea for Apple to open their OS to other hardware seems like a great idea, until you realize they are running a business. They are selling 2 million units a quarter with a significant profit margin. What good reason would they have to give that up? Their unit sales are climbing at a rate faster than any other hardware manufacturer right now. This is because of great hardware, and great software (more specifically it is because of great looking hardware, great software, and good tech support).

As far as Psystar, the sad thing is they are a very small company making very big headlines. I honestly do not believe that they were simply looking for a publicity stunt, but unfortunately that is all they are going to get. If you look on the “About” section of their website, it says they have only 30 years of combined experience in the field…for their entire company. Which means they honestly only have 3 guys working form them. And there is a good chance one of the three is Human Resources.

Unfortunately they will not have the resources to legally fight Apple, even if they had a leg on which to stand. Now when Dell decides to do the same thing, then we have a story.

Posted By Jonathan W., Norfolk, VA : April 15, 2008 12:02 am

Apple has good reasons for not licensing the OS.

1) Apple likes controlling the hardware and the software. So many of Windows’ problems are caused by crappy third party device drivers (and third party devices).

2) Apple makes a lot of money off the hardware.

I want to see an Apple make a modular computer somewhere between the MacMini and the MacPro.

The MacMini is too limited and too hard to upgrade. The MacPro is too expensive. The iMac comes with an integrated monitor that I don’t want or need.

Why can’t I get a nice, expandable, upgradable, Apple system for about $1000? Apple, are you listening?

Posted By Jim, Columbia : April 14, 2008 10:14 pm

I think the real story isn’t about the $399 price point, but the configuration options Psytar is offering. Personally, I would love a small tower from Apple that was between the mini and the mac pro. The ability to choose my graphics card and the quality/size of my monitor would be nice. Are you listening Steve?

Posted By Hampy, Washington, DC : April 14, 2008 9:15 pm

Duh it’s about time Apple wakes up and becomes a software company…it’s nearly there now with Windows Safari and
Itunes/Quicktime. Microsoft needs to get a #@!! kicking.

Posted By Norman Washington, D.C. : April 14, 2008 5:29 pm

Okay, I need to settle this.. All you people out there shouting about how good linux is.. get over it.. It can’t run photoshop, (yet) so its not worth working on unless you are a sys admin or only using Open Office.

Mac Users.. I agree with the person who said, “If you are so sure your OS is so good, why don’t you release it for all machines.” He has a good point. This argument is never going to be settled until Apple opens up its OS.

Apple shouldn’t be so scared to do so either, because their OS is a great unix system with a kick ass UI on it. Nuff said.. but unlike back in the day when the OS 7-9 was a pile of crap and they tried to license it out.. Things didn’t turn out so good.

Times are different. Get over it.. if you os is so good, lets throw it into the “Fair Market” and see if it sticks without making us pay the Mac hardware premium!?!

I would use the Leopard over Fedora/Ubuntu any day.. but I can’t.. and until I can I am not going to spend god wads of money on a “flashy” looking household appliance!

Open it up.. its the only way we will ever settle this endless back and forth argument.

Posted By John Drefahl, New York, NY : April 14, 2008 5:15 pm

If Apple will go after New York city for using an apple logo that looks nothing like Apple’s logo, then this company can expect to have Stevie Jobs call and whine and complain and then slap a lawsuit on them. Everyone acts like Steve Jobs saved the Mac, but the ipod saved the Mac, but the Mac will never be a market leader if the whole system is closed down like a very proprietary company would do, and by any chance they did, they will be in court like MS was many years ago, and Apple will have more issues then since they go alot farther than MS ever did in pushing their products through an OS. Wake up people, your feeding a money hungry monopolistic company. But hey nothing beats being the cool kid on the block with his glossy looking Apple that makes them feel so warm and fuzzy. Good luck when it breaks, don’t call me just send it back to the dollar hogs and let them send you an invoice.

Posted By Eric, Cincinnati OH : April 14, 2008 3:33 pm

399 + 129 for Leopard + 79 for iLife = $607, for something that may break every time a security update comes, with no Bluetooth, Wifi, Firewire, IR receiver?
NO THANKS!

Posted By Eytan, Seattle WA : April 14, 2008 2:50 pm

Ah! The return of the clones! For years, many waited patiently to afford the last generation of Apple computers and then lo and behold, the clones arrived. I bought one and sighed a sigh of relief. Then mysteriously, the cloned were halted and we were back to mortgaging our homes to afford Apple Macs. Sooner or later, Apple will have to produce it’s own ‘Poor Man’s’ line of Macs in order to bridge the price gap with PC’s. That would be better than allowing new clones.

Posted By Aten Imago, Geneva, Switzerland : April 14, 2008 1:27 pm

Sorry, but if this machine doesn’t have Steve’s personal blessings, I want nothing to do with it.

Now it would be nice if Apple built a machine like this, but that will never happen. I think this Pystar looks nice, but the next MacMini is going to be even smaller than the older MacMini and that’s Apple’s style. Love it or leave it.

Posted By Constable Odo, Queens, New York : April 14, 2008 12:17 pm

Seems the restriction to only run on apple labled equipment would be something the FTC would look into as being illegal.

Posted By Rebecca, Iowa City, Iowa : April 14, 2008 11:52 am

“You just can’t beat the Apple monopoly. ”

You just can’t beat the idiocy of people who don’t understand the word “monopoly” :p

Posted By Gears ofWar San Francisco CA : April 14, 2008 11:24 am

James, is that why they have hardly any problems except compatability issues? I would much rather have a Mac inside of a PC case. The insides is what matters. The fact that they look way better on the outside is just a great plus.

Posted By Tim, Hudson Wisconsin : April 14, 2008 11:14 am

Article and, even more so, many comments are short on facts about Apple pricing. Recent analyses show Apple’s products are often competitively priced and when over-priced it is inconsequential compared to the value of lost user time to viruses and extra software purchased that Apple includes. Those recommending Apple license software need to bear in mind that challenges and negative user experience impact of supporting a wide variety of hardware you don’t control–just look at Vista for example. My Macbook Pro and 8-core desktop cost me at most 8% more than an HP or Dell equivalent, but I got a superior design with superior usability and while I can run Windows. Linux, and Solaris like Win-Intel systems, I can and do mostly run OS X–something that doesn’t work well off Apple hardware despite the claims.

Choice is good, if you don’t want a UNIX-based system, you have choices. I consider my UNIX-based Macs the best tools for what I do. You have the right to and need to make the decision that is best for you. No one product or brand is right for everyone. We understand that when it comes to automobiles, why are we blind to that when it comes to computer systems?

Posted By D, SF Bay Area, CA : April 14, 2008 11:03 am

Like mac hardware better hahaha!!! You Apple head are freaks. All mac hardware is these days is a PC in a white box.

Like mac hardware better… that’s the funniest thing i’ve heard this month.

Posted By James, Troy MI : April 14, 2008 10:55 am

“Posted By Geoff Davey, Oceanside, OR
You just can’t beat the Apple monopoly. They want you to pay twice the fair price for a device that’s half as good.”

The simple fact you are not typing it on a Mac proves Apple does not have a monopoly
you moron and very confused on what a monopoly is

Posted By l ny : April 14, 2008 10:44 am

Server down already eh? There you go – Apple bending over its customers again. I despise Windows but at least -I- get to decide what box I put it on with what features. Now that Macs are Intel based, I would consider installing a Mac OS onto a box to play with. Unfortunately Apple doesn’t want me to have the right to configure a computer as I wish – their configuration is the only thing acceptable.

Apple should grow up and sell the OS. Mac users are always bragging about what a great OS it is over Windows. Only problem is that they can’t prove the claim on anything not made by Apple.

Open Source is the future folks.

Posted By Greg Forest, Cowtown, Texas : April 14, 2008 10:42 am

Do you mean EMI or EFI, maybe worth correcting?

RB

ex ped: Thanks for the catch, Radiusboy. Fixed.

Posted By Radiusboy, London, England : April 14, 2008 10:38 am

Keep telling yourself that you didn’t waste money on a Mac.

I can admit that I screwed myself over by buying one. My MacBook is less than a year old, is sparingly used, but the plastic is peeling off on the sides of the keyboard. My 5 year old IBM T40 is in better condition cosmetically. Not to mention money I blew on the Leopard upgrade which gave me a 3D toolbar and a different wallpaper. Thanks Apple!

Posted By AJ, New York, NY : April 14, 2008 10:28 am

A CAD order is just going to move this all to the new groups and everyone will have it. Apple needs to see the train (finally) and get with the idea of selling software not hardware. I like mac hardware but their $ is just to high.

As far as the size, yeah its bigger, BT and WIFI and firewire are simple add ons. More interesting is how long can usb and firewire fight it out. USB 3 is due out next year, and the new firewire is already projected to have double the speed of the usb 3.0. We only need one of these. MM fiber is the only way to go.

Posted By R, Columbus ohio : April 14, 2008 10:16 am

And thats whats wrong with Apple – “hey you peon, use our software the way we tell you on only our machines, or else …”

I’m sticking with my dual boot linux/Windows machine, and laughing at the clones of macs (the users, not the machines).

Posted By John Wayne, USA : April 14, 2008 10:14 am

minus apple care and any Apple support

Posted By l ny : April 14, 2008 10:04 am

You just can’t beat the Apple monopoly. They want you to pay twice the fair price for a device that’s half as good.

Posted By Geoff Davey, Oceanside, OR : April 14, 2008 9:59 am

So then peel off one of your old Apple stickers and put it on the side of this case and wah-la….it’s now “Apple-labeled”. If they change it to read “Apple-manufactured” later, the show’s over. But not for now.

Posted By dukeb, new york, ny : April 14, 2008 9:51 am

Maybe they took it down temporarily to remove the OS X free install, because if that is the only thing stopping their business plan, then they are good to go. Also the fact that probably 500,000 people who are interested in purchasing a mac at a non inflated price and another 500,000 shareholders worried about their stock visited the site this morning that is probably used to 1000 visits a day tops

Posted By Jason Aurora, IL : April 14, 2008 9:40 am

It seems that it could be a publicity stunt. Could any company really be that dense? This may signal the end of the “Hackintosh” community, as Apple would only need to embed a chip into their motherboards that would talk to the OS to identify it as “Apple-labeled” and prevent generic hardware from running.

Posted By Charles Gordon, Sacramento, CA : April 14, 2008 9:38 am

Simply buy any hardware you need and place Dream Linux on it, bring it up and you have the look and feel of a Mac for even less than this

Posted By T Morris Billings MT : April 14, 2008 9:30 am

Apple seriously needs to fill this gap in their product line IMO. iMac and Mini form factors are great for consumers, and Mac Pro for the professional users, but the middle of the road “pro-sumer” is left out in the cold.
This box may come barebones, but the potential is there to expand on it if you wish. A nice entry point into the OSx86 (hackintosh) arena. If Apple offered something like this I’d pay the premium for supported hardware though. A tower with midgrade components (I don’t need a Xeon) would be a welcome addition to their lineup.

Posted By Chris, London, ON : April 14, 2008 9:21 am

Looks like Apple Legal works weekends, too. PysStar’s website is, umm…”down for maintenance”! Yeah, riiight! :-)

Posted By aaplwatch New York, NY : April 14, 2008 9:05 am

It’s a Mac Mini, minus the compact form factor, minus WiFi and Bluetooth, minus Firewire, minus OS X

Posted By C, Grand Rapids, MI : April 14, 2008 8:55 am

well their server is down already LOL

Posted By L ny : April 14, 2008 8:46 am
CNNMoney.com Comment Policy: CNNMoney.com encourages you to add a comment to this discussion. You may not post any unlawful, threatening, libelous, defamatory, obscene, pornographic or other material that would violate the law. Please note that CNNMoney.com may edit comments for clarity or to keep out questionable or off-topic material. All comments should be relevant to the post and remain respectful of other authors and commenters. By submitting your comment, you hereby give CNNMoney.com the right, but not the obligation, to post, air, edit, exhibit, telecast, cablecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comment(s) and accompanying personal identifying information via all forms of media now known or hereafter devised, worldwide, in perpetuity. CNNMoney.com Privacy Statement.
Philip Elmer-DeWittSilicon Valley veterans like to joke that Steve Jobs must be surrounded by a reality distortion field; if you get too close to him, you start to believe what he's saying. Thanks to the success of the iPod, the launch of the iPhone and the renewed interest in the Mac, Apple has made believers out of millions of customers - and made a lot of investors rich. But Philip Elmer-DeWitt believes that an ounce of skepticism never hurts when writing about the company. He should know. He's been covering Apple - and watching Steve Jobs operate - since 1982, first for Time Magazine, then for Business 2.0, and now for Fortune.
Subscribe to Apple 2.0: RSS feed | email newsletter
* : Time reflects local markets trading time.† - Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges.• Disclaimer
Powered by WordPress.com.