Sunday, September 7, 2008

Psystar can't compete with "iDell" or HP "SmartMac"

Psystar Open Computing Gadfly located in generic industrial space Florida now famous for suing Apple computer on Anti-Trust Grounds, DOES NOT WANT TO WIN the lawsuit.  In fact they cannot win.  They would be out of business in a month if they did.  

As mentioned in a previous post.  Should Psystar win their lawsuit Against Apple they would have to compete with every beige box manufacturer in the world.  Dell, HP, Lenovo, and a long list of others that have learned the hard lesson that Windows PC's are priced based commodities that they cannot make a significant profit on.  Psystar would be run out of business as soon as the HP "SmartMac" or "iDell" computers hit the street.

As Exhibit number 1 today we have the following Article by Brian Caulfield noting that Dell is selling off it's computer factories (EG hiring other companies to manufacture for them like Apple) and hiring designers in an effort to better compete in todays computer marketplace

What makes this interesting is that it was not THAT long ago that we were reading about Dell's magic formula for manufacturing expertise  that allowed them to sell cheaper than everyone else could possibly.  It was apparently not a sustainable advantage.

Dell knows that in order to compete in the PC environment today you have to ad value beyond the beige box.  Be that design or brand, something that adds value beyond the box itself. Without the value add the only thing left to compete on is....   Price... and that is a game no one can win long term.  Psystar will go away and someday we will know who paid for this wild goose chase but 

So if Dell cannot manufacture PCs at a price that they can make a profit... What makes Psystar think that they can.  They don't and won't.  The remaining question is WHY?

This is all made up.  I don't know anyone at any of these companies.  If any of this turns out to be real I will be as suprised as you.  Taking this writer seriously is seriously a bad idea.


Anonymous said...

"Dell is selling off it's computer factories" should be "Dell is selling off its computer factories".

Anonymous said...

You've got a point, but looking beyond Psystar staring down the muzzle, OSX is intended to support the sale of Apple hardware. If the legal muppets award in Psystar's favour, why would Apple want to compete when every Joe on the planet was cleared to poach on Cupertino's turf?
A win for Psystar would kill the goose that laid the golden eggs.

BnVested said...

I agree. The effect on Apple would be horrendous. It was not the point of this post though which is simply to point out the twisted logic possible conspiracy and extortive behavior evidenced to date.

Unknown said...

Here are three other possiblities:
1) Psystar don't think they can win, but hope the lawsuit will drag on long enough to get some cash out of it.
2) Free publicity. They've already got a ton of it and grow their other businesses through that (they do other things besides sell hardware with OSX).
3) They're not that smart/rational.

BnVested said...

Thats what I said. isn't it