‘ ‘ ‘ Apple Computer, Inc. has long been extremely protective of its operating systems and its… ‘ ‘ ‘ Apple Computer, Inc. has long been extremely protective of its operating systems and its hardware, forming a universe of ‘closed systems’ development to rival the ‘open systems’ standard of Microsoft and others. ‘ ‘ ‘ Apple had off-and-on success with this approach, producing, with Macintosh OS X, an arguably more reliable system. ‘ ‘ ‘ Proponents of Apple commonly claim that Apple ‘just works,’ as Apple keeps a tight control over the hardware and software its Macintosh computers are capable of utilizing. ‘ ‘ ‘ Opponents of Apple argue that this reliability comes at a cost of price-inflated hardware and a severe restriction of software and hardware choices. ‘ ‘ ‘ Some opponents have even gone so far as to flirt with illegality and make Macintosh ‘clones’ ‘mdash; non-Apple hardware running Apple software ‘mdash; available to the general public. ‘ ‘ ‘ Apple itself sticks to the mantra that closed systems breed reliability, stability and steady technological advancement. ‘ ‘ ‘ This justification fails to mention that Apple makes a large part of its profit from the sale of hardware, and ‘- as a company representing a minority of the desktop computer market ‘- would find it difficult to survive on the sales of software alone. ‘ ‘ ‘ Computer users and providers hold on to a very specific dream because of Apple’s reputation as a producer of reliable software, its continued use of closed systems and the fact that it does not produce a ‘dirt cheap’ desktop in the $279 price range ‘mdash; the starting price of the performance-light Dell Inspiron. ‘ ‘ ‘ Wouldn’t it be the best of both worlds if Apple would market its software independent of its hardware, essentially opening up its code-base to become compatible with possibly cheaper third-party machines? ‘ ‘ ‘ A cheap Dell, costing only about $350, could theoretically run Macintosh OS X ‘mdash; the cheapest Apple-made desktop, the Mac Mini, costs around $599. ‘ ‘ ‘ Apple makes it quite clear that loading Macintosh proprietary software ‘- namely Macintosh OS X ‘- on non-Apple hardware is a violation of the Apple End User License Agreement and have even gone as far as to raise copyright concerns. ‘ ‘ ‘ But this didn’t stop a small company, Psystar, from selling inexpensive, custom-built machines that can ship directly with a preloaded OEM version of the Macintosh OS X operating system. ‘ ‘ ‘ ComputerWorld.com reported on an on-going legal battle between Apple and the comparatively smaller Psystar. ‘ ‘ ‘ Apple’s arguments are rather simple: Psystar is violating both copyright and licensing agreements by selling its custom-built hardware with Macintosh OS X software. ‘ ‘ ‘ Specifically, Apple is in a quandary about how Psystar got around the security measures Apple wrote into OS X to ensure that the operating system could only run on Apple hardware. ‘ ‘ ‘ Psystar argued that Apple is misusing its copyright to OS X and infringing upon customer rights by requiring that the operating system, which can be purchased independently from the Apple Web site, be loaded on only Apple hardware. Psystar asserted that its activities were legal, as they purchased its copies of OS X from Apple. ‘ ‘ ‘ A judge recently renewed Psystar’s hopes of getting the best of Apple, as ComputerWorld.com reports. ‘ ‘ ‘ According to the Web site, Judge William Alsup granted Psystar the ability to re-work its previous case that was previously thrown out. ‘ ‘ ‘ With a newly revamped case, Psystar could, by some possibility, convince a judge that Apple’s actions are suspect, opening up room for Psystar and other companies to stretch the Apple End User License Agreement to include the loading of OS X on non-Apple hardware. ‘ ‘ ‘ What does this mean for Apple? A widespread adoption of OS X on third-party hardware could be quite damaging to the company’s’ profitability. ‘ ‘ ‘ Apple built a reputation for both well-written software and well-built hardware. Its hardware is considered ‘top of the line’ and is priced as such. This move undoubtedly splits the market of people who are ‘just looking for a computer.’ ‘ ‘ ‘ It can be argued that Apple’s prices are not unreasonable for the hardware received in its desktops and laptops. After all, many Apple proponents point out, all Apples ship with hearty Intel Core 2 Duo processors and utilize speedy DDR3 memory. ‘ ‘ ‘ But a computer buyer searching for a truly inexpensive machine for simple word processing and Internet surfing tasks would most assuredly be hard pressed to find an Apple machine that could be considered ‘dirt cheap.’ ‘ ‘ ‘ He is then left with a dilemma: upgrade hardware and buy a Mac for its operating system or save money by giving up the OS X look and feel by buying something cheap. It is the purchasing power of the buyers who choose the former that Apple would most assuredly miss. ‘ ‘ ‘ These users would lose most justification to buy Apple hardware if a cut-down Dell were available with OS X. ‘ ‘ ‘ Both Dell and Hewlett-Packard offer machines with cheaper, less powerful components that cost surprisingly little money. Both companies offer entry-level desktops for $279. Buyers who are merely interested in the OS X user experience could do well to choose cheap hardware running the Apple operating system. ‘ ‘ ‘ It can be counter-argued that Psystar would not have a significant impact on Apple’s profitability because of Apple’s ventures in embedded systems. Apple’s contributions to the MP3 player and cellular telephone markets may have given the company enough profitability to lose a segment of its desktop and laptop hardware markets, while retaining operating system and software sales. ‘ ‘ ‘ It remains to be seen if Psystar and similar companies can effectively and practically put a dent in Apple’s tight grip over its codebase. It also remains to be seen if companies like Psystar, if empowered by court wins, will begin to affect Apple’s true profitability. ‘ ‘ ‘ If you are a die-hard Mac user who is insulted by the idea of running OS X on a Dell, Apple may need you to continue to upgrade your hardware regularly.