The return of the Mac clones

History repeats itself 101.

Back in the 1990s,  computers powered by Intel’s Pentium processor and Microsoft’s Windows 95 operating system were taking over the world. Sales of Macs were tumbling, and in response, Apple allowed a selected number of WinTel computer makers to install its System 7 on their hardware. Although it increased Apple’s market share and gave the company higher visibility, it also cannibalised its own sales. When Steve Jobs returned in 1997, he quickly ordered an end to this initiative.

Flash forward to 2008, when Apple sells 2.3 million Macs in Q1, a whopping 51% increase over the last quarter, and a growth rate 3 times faster than the rest of the industry.

Two main reasons for this.

One, the iPod. The halo effect of the iPod cannot be measured. At a time when IPod sales have started to flatten – the shifting of 10.3 million iPods in Q1 representing only a 1% increase over Q1 2006 – Apple’s magic touch has extended to its other products. Sales of Macs and iPhones are up. It has enabled it to launch a new product (category) – the iPod Touch, and it has helped to cement Apple’s position as the top online music retailer in America.

Two, Vista. Although it’s too early to say it spells curtains for Windows, Vista has proven bane and boon to Microsoft. In some ways Microsoft has stumbled with the product, and long-time users have chosen to remain with XP or to move to an alternative system.. Such as Apple’s Mac OS.

Psystar Open

So this time round it’s the success of Apple’s Macs which has led to the resurgence of Mac clones.

The first salvo has come from American computer manufacturer Psystar, which has begun selling a new computer that runs the Mac OS X Leopard.

The company calls it an “open computer” and the basic US$399 configuration provides a 2.2GHz Intel Core 2 Duo E4500 Processor; 2GB of DDR2 667 memory, an integrated Intel GMA 950 Graphics processor, a 250GB hard drive, and 4 USB Ports. Operating systems available include Ubuntu, XP Pro, Vista, and OS X 10.5.

(An OpenPro version which features the Core Quad processor starts from US$999.)

This is US$200 cheaper than Apple’s entry level Mac mini desktop, which comes with a 1.83GHz Intel Core 2 Duo processor, 1GB memory; and an 80GB hard drive.

It remains to be seen if this represents the tip of the Mac clone iceberg.