Failure to launch: Would-be ‘Mac cloner’ Psystar sold just 768 PCs with Apple’s Mac OS X installed

72 Hour Apple Black Friday Sale“The Mac clone maker now fighting for its life in federal court pitched an extremely aggressive business plan to potential investors last year, claiming that it would sell as many as 12 million machines in 2011,” Gregg Keizer reports for Computerworld. “According to a slide presentation that Psystar showed to venture capitalists in 2008, the Florida-based computer maker projected sales during 2011 of between 1.45 million and 12 million, with the first figure its ‘conservative’ estimate and the second number representing an ‘aggressive’ growth model.”

“Psystar was looking for $24 million in funding, the presentation said, to expand its operations as well as to back its own branded hardware so it could ‘compete directly against Apple,'” Keizer reports. “Under its conservative projections, Psystar told investors it would sell 70,000 computers in 2009, 470,000 systems in 2010 and 1.45 million machines in 2011. The firm’s aggressive growth model, however, put those numbers at 130,000, 1.87 million and 12 million during 2009, 2010 and 2011, respectively. By comparison, Apple sold 10.4 million Macs during its 2009 fiscal year, the 12-month span that ended Sept. 30, 2009.”

Keizer reports, “Dr. Matthew Lynde, who works as an economics consultant for Cornerstone Research, said in a declaration submitted to [the court] on Monday [that], after digging through invoices, purchase orders and other documents, Lynde was able to pinpoint only 768 sales of machines with Mac OS X pre-installed. ‘Psystar has not challenged my analysis of its financial records,’ Lynde added.”

MacDailyNews Take: Lah-who-suh-hers.

Full article here.

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44 Comments

  1. i thought they didn’t keep any records. which is why they had nothing to give the courts about the damage they had done to Apple

    looks like they were fibbing.

    as for the head start bit. it sounds like a good idea on paper but of course it wasn’t going to work. not when you have one shop in the corner of the country and no tech support to offer anyone. not without days of shipping etc. and the only companies fully trained to deal with Mac OS X are authorized repair shops that aren’t going to risk that gig by touching your stuff

  2. Frankly from the prevalence of confusion over the differences between “there”, “they’re”, “their”, “it’s”, “its”, “too”, etc, I’d say without the least hesitation that the English-‘speaking’-Web-world in general and America in particular are about as close to functionally illiterate as it is possible to become, while still being able to recognise that “words ‘n’ letters ‘n’ numbers ‘n’ shit” have meaning.

    MDN word: “bad” as in “Most Americans’ English is pretty bad.”

  3. I read the story yesterday, and my vague recollection is that Macs and Rebel EFI sold a little less than 1000 units, and that there was an estimate of Gross Profit of about $240,000. This struck me as odd, as that would put their Gross Profit per unit at around $240. Seems they have a higher markup than Apple.

  4. I’d say without the least hesitation that the English-‘speaking’-Web-world in general and America in particular are about as close to functionally illiterate as it is possible to become

    1. I’m not sure why America is being singled out here, there are dumb and ignorant people on all cultures and all languages.
    2. Is functionally illiterate an objectively definable term?

    I love the English lanuage and I try to use it properly, although I’m sure I make plenty of mistakes. Some on pupose and some unintentionally. I don’t like seeing their and there and they’re misused but sometimes I’ll do it myself when I’m typing in a hurry.

    I’m not sure given all the terrible things people do to each other that it’s that important to get overly pedantic about grammar and language usage.

    But each his or her own I suppose.

  5. @iPhoner,

    “In other (welcome) news:
    Psystar website has been in terminal spinning gear mode for days.”

    Just been there, out of morbid curiousity, and seems to be working ok and still flogging the same crap, unfortunately.

    Along with its calls for restitution, Apple should be demanding the taking down of this site as a matter of urgency.

  6. @ twilightmoon
    “Illiteracy means you can’t read. It has nothing to do with not being able to spell or poor grammar.”

    Try hovering the mouse over the word ‘illiteracy’ and press Control Command D

    Apple’s dictionary will tell you that it means inability to read or write.

    It goes on to alternatively define it as lack of knowledge, lack of education.

  7. AlanAudio

    I was on my iPhone when I posted that as I am still now.

    Even as defined as an ability to write even with poor grammar or spelling you can still write and are not technically illiterate in that sense but perhaps it does indicate a lack of proper education.

  8. It seems likely that the investors who bought into Psystar’s original sales pitch are now funding their legal defense. Based on the numbers that Psystar provided in their market analysis and proposal, there would have been a huge amount of profit. Their business strategy (including the welcomed lawsuit and associated publicity) is actually quite savvy, if somewhat distasteful.

    Their whole business model hinges on one simple point – that Apple’s OS restrictions are not enforceable. It’s a huge risk, for a huge gain. There are plenty of venture capital firms out there looking for exactly these kinds of opportunities. They don’t go all-in to any one of them, but it only takes one to hit to make stock-market-beating returns on the portfolio. That’s how that game works (for those that have enough money to play in it).

    But in this case, if Psystar can’t defeat Apple’s OS restrictions, then they have nothing, and any investments in the company bought only lawyer salaries, court costs, and (I’m betting) excellent salaries, rich comps and benefits and self-prescribed bonuses for the executive officers of the company.

  9. @Proud Puppy

    So you’re proud of your ignorance? Do you think standing up for idiocy is a nobel gesture? Are you one of those people who puts down others because they are “intellectual elitists”? If so there is a political campaign that is perfect for you. Palin 2012. She needs more people just like you.

  10. “Their whole business model hinges on one simple point – that Apple’s OS restrictions are not enforceable. It’s a huge risk, for a huge gain. There are plenty of venture capital firms out there looking for exactly these kinds of opportunities.”

    Huge risk, yes. Huge gain, not nearly so much. Let’s say someone is able to find a way to steal Apples work. At that point, you have just bought yourself a product that either can’t or won’t be developed any further, because what you cannot buy is the efforts of the people at Apple to do any more development.

    Yes, you might kill the original artist, but where are you really going to go with your pirate version of your operating system or song? It might seem like something for a year or so, but the buyers of your “product” are very unreliable, that’s why they come to you in the first place. Snakes seek out snakes to do business with, death spiral to follow.

    As someone who has done graphic art for a living, when the thieves who steal others work get together, they die together.
    That is called street justice.

  11. So leave to some ass-hat like ‘montex’ to do what no other poster in this forum has done, tied in sending a quick comment into a forum to Sarah Paln. (Good lord, she’s hot). Leave your useless political opinions to yourself. No one cares or wants to read them. So what if someone screws up their comments – it’s quick and dirty and meant to leave a thought. We’re not writing our final thesis, we’re giving our .02 on the topic at hand. So yea, piss off if you can’t decipher someone’s ‘there’ or ‘their’. It was more than likely an honest mistake.

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