March 8, 1997: Apple renames the forthcoming Mac OS 7.7 replace, calling it “Mac OS 8.” It’s greater than only a identify change, although: It’s a sneaky sucker punch that in the end knocks out Mac clones.
Sadly for Mac customers, the up to date working system doesn’t ship the whole top-to-bottom rewrite promised by Apple’s Project Copland. Nevertheless, the renaming technique seems to be a superb (if underhanded) manner of getting Apple out of horrible licensing offers.
Mac OS 8 and the assault of the Mac clones
Early 1997 wasn’t a great time to be an Apple watcher. Regardless of the return of co-founder Steve Jobs, Apple continued losing money hand over fist, struggling by means of a few of its worst monetary quarters ever.
One massive problem Apple confronted on the time was the existence of clone Macs, which the corporate initially considered as a technique to save itself from Microsoft’s Home windows 95 juggernaut. Starting in December 1994, Apple signed plenty of licensing offers with firms like Energy Computing and Radius to provide Macintosh-compatible computer systems.
The aim? Make Mac aggressive with Microsoft.
As Apple’s market share fell, long-time rival Microsoft steamed forward, because of its software-licensing technique. Cupertino execs envisioned clone Macs as a great way to safe Apple’s future.
Sadly, it didn’t fairly work like that.
Mac OS 8 ends a nasty deal for Apple
Apple CFO Fred Anderson labored out that the clone Macs technique really price the corporate cash. The $50 payment Apple obtained for each clone Mac bought proved far too low. The corporate did not even recoup the cash misplaced when an individual selected a clone over an precise Mac.
Cupertino couldn’t get out of the disastrous settlement if it saved updating System 7, the Mac OS licensed to clone-makers. Nevertheless, if Apple launched Mac OS 8, it might argue that the deal turned null and void.
Apple made the swap, calling the brand new working system Mac OS 8. Then Cupertino started negotiating new, extra favorable phrases with third events licensing the Mac working system.
Mac clone-makers battle again
This inevitably led to consternation from Apple’s licensees. On August 5, 1997, Apple turned locked in a standoff with Energy Computing after the official launch of Mac OS 8. (You may learn extra in regards to the feature set of Mac OS 8 here.)
Apple ultimately agreed to amass Energy Computing’s buyer record and Mac OS license for $10 million and a further $100 million in AAPL inventory. That coated all of Energy Computing’s excellent money owed and prices. The clone-maker closed shop for good in early 1998.
Placing an finish to Mac clones was one of many first main strikes Jobs made as Apple’s new CEO after his 1997 return, together with shutting down the Newton MessagePad division.
System 8 proved successful within the market, although it fell wanting expectations. Mac followers needed to wait for OS X to see a major update, however System 8 marked the beginning of Apple’s turnaround.
