Erstwhile ‘Mac cloner’ Psystar pulls plug; ‘shutting things down immediately’

Black Friday Apple Blowout VI“Psystar Corp. is in the process of closing down its operations, a move that follows a court decision earlier in the week barring it from selling products already found to have violated Apple Inc. copyrights,” Ben Charny reports for Dow Jones

“The Doral, Fla.-based computer maker, which made machines that run Apple’s popular Macintosh operating system, intends to fire its eight employees, company attorney Eugene Action told Dow Jones Newswires on Thursday,” Charny reports. “Psystar President Rudy Pedraza will then be ‘shutting things down immediately,’ Action said. ‘They will not be in business.’

Charny reports, “Action said Psystar intends to appeal the recent decision. ‘We respect the robe,’ Action said, referring to U.S. District Judge William Alsup, who issued the ruling.”

Charny reports, “Late Thursday, Psystar’s Web site was inaccessible.”

Full article here.

MacDailyNews Take: What we wrote in our very first Psystar report on April 14, 2008: “Expect Psystar’s Mac mini shoved into a fugly ATX PC tower case, er… ‘OpenMac,’ to be shut down quicker than a Windows-powered Navy destroyer.”

For the U.S. court system, we consider 20 months to be “quick.”

55 Comments

  1. Now all the 786 idiots that actually purchased one of these PC boxes finally get the value that they deserved for supporting such a gun blazing company. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  2. I wonder how much market share apple will need before their vertical integration becomes anticompetitive. If MSFT had only 10% OS market share, I doubt anyone would have cared that they were bundling IE. How long can Apple be successful before the FTC messes up their business model?

  3. Josh,
    Regular PCs don’t need a second option. Consumers need to choose the smart option – a Mac. And if they just can’t bring themselves to do it, that’s their own fault. Chrome OS is coming next year… they can have that.

  4. Wow! Eight employees! What did they pay for salaries? Divided by 8 the gross earnings would give each of the 8 around $30k. That doesn’t take into account cost of cheap parts and the money the owners were taking out of the company nor the cost of their legal efforts. they must have paid these poor workers peanuts!

  5. It was a stunt to try and get VC money.
    With no internet buzz the company would have closed 6 months after it opened and would have sold maybe a hand full of systems.
    But, Psystar figured if they could pump the internet and generate enough buzz they could pump some Free VC Money into Rudy Pedraza’s pocket and then he could walk away Rich and leave the VC’s on the hook to Apple and the law.

    After being burned the VC’s didn’t buy it and Pedraza brothers gotten a ride on the Legal system.

    But, not to worry the Pedraza brothers are always up for a good scam. And Apple is the leader and they’re still looking to see how they can scam some users wanting to go with Apple but, wanting a cheap as you can get PC. Expect them to steal some more open source code and claim they created it and sell a scam product like the EFi-X by Art Studios Entertainment Media. (Where Open source code + USB Key with a DRM Chip = profits!!! The EFi-X might cost a whole 5 dollars if that to make and sells for about $300.00 and might work for 18 months if you are lucky before burning itself to a Crisp all sealed up in it’s secure from customer’s eyes poor heat transfer epoxy filled outer thin plastic shell).

  6. @anaknipedro
    The problem with your analysis is that Apple and Microsoft have very deferent business models. Apple is a hardware company. So they would have to have a monopoly in hardware and software to be able to get in any kind of antitrust trouble. So when your software solution is 90% prevalent and you tie your browser to your OS so it can not be deleted, which Apple has not done ever, then you have a problem. The issues that Microsoft faced was that the browser was embedded in to the OS with out means of deleting it to use a competing packaged, Apple has neve done this with it’s OS or browser.

  7. Its easy to put osx on any hardware today. If you like to run osx on your pc its no problemo. I helped a couple of my friends to get osx on their hp:s and no name mashines. Its all done in 30 min.

  8. @anak, the issue wasn’t MS’s share, it was the fact that at the time, it was impossible, to unbundle IE from the OS. On a Mac, you can install Firefox or Camino or some other browser and throw Safari in the trash. No probs.

  9. Sadly, because this is Psystar, I’m still at least partially convinced this is yet another of their publicity stunts.

    Only if they stay shut down for an extended period of time will I allow myself to believe that they’re truly not coming back.

  10. Apple’s aggression was aimed at ONE target only – the OS X customer.

    MDN – the only place where turkeys vote for Christmas. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  11. @ Josh

    The “PC market” has a very, very good second option in Linux–Ubuntu, Debian, Red Hat, etc. I’ve installed a variety on my Macbook Pro using Virtual Box, and even on an old iBook G4, and every single distro has been quite usable–far more so in many aspects than MS Windows (but still no where NEAR as polished and foolproof as OS X).

    @ anaknipedro:

    MS was an abusive monopolist which used its dominance in one area to enforce a dominance in another. THAT was why they found themselves in legal troubles–deliberately sabotaging competitor’s software, tying (bundling) products, charging OEMs a Windows license for every PC sold regardless of whether it had Windows or came with no OS, etc.

    Apple can gain 100% market share and so long as it doesn’t engage in anti-competitive practices, it will never be in legal troubles.

    @ Twenty Benson:

    Fscking idiot.

  12. @F. Maxwell
    “You want Apple to lose all of their massive profits from hardware sales that they use to fund development of OS X… gobble gobble”

    Jeeeezz… that must be the obscene “massive profits” sat unused in Apple’s bank account? Profits only possible by forcing OS X customers into an anti-competitive lock-in to a tiny range of ‘pretty-boy-Ive’ hardware?

    “You fscking Windows troll… gobble gobble”

    Like I say – a turkey voting for Christmas… how’s your Windows laptop going BTW with your POS Microsoft OS? LOL.

    “gobble gobble” ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  13. @F. Maxwell: Nail, hammer, head. With Apple controlling hardware and software, they don’t have to cope with desgning an OS that has to run on potentially inferior processors. We saw it when they dropped support for Classic apps, and most recently when Snow Leopard was Intel-only. That’s why, @Josh, Apple isn’t going to open up the Mac OS to all computer makers; the OS would have to be incredibly crippled to be able to work with low-budget processors, and probably would end up only marginally better than Windows is now.

  14. Fact is – like most discerning computer-users – I find OS X to be a beautiful product, Apple’s masterpiece – an order of magnitude better than its nearest alternative.

    But – also like most discerning computer-users – I’m not at all impressed by Apple’s tiny and inadequate range of girlie hardware products.

    Apple KNOWS there are millions of people like me. Apple KNOWS that if it did not force us to continue using its hardware – even though it falls well short of actually meeting our needs – we would all be off TOMORROW… buying readily available hardware from professional companies who are keen to supply a broad range of choices, keen to listen to varying customer needs and respond with highly appropriate product offerings and keen to win my business in an open and competitive free-market.

    Because Apple knows this for a FACT – it acts aggressively to close down any young aspiring hardware business that attempts to enter the market providing OS X customers with extended hardware choices that meet their needs. Behind all its glossy, girlie, left-wing marketing hype, Apple is a ruthless, greedy multi-national player – forever exploiting the law to ensure customers are kept locked-in and free-market competition is kept locked-out as a means of squeezing as much profit as it possibly can out of its imprisoned user-base.

    The success of this ‘legal scam’ of aggressive customer lock-in can be seen by looking at the company’s mushrooming bank-balance… ten of billions in obscene profits which – despite Christmas-voting Mac turkeys warbling on about ‘OS X development’ – is clearly way, way in excess of anything remotely near the financial resources required to keep OS X the world’s best.

    Perhaps what is most remarkable about the company how successfully its marketing campaign has been at reducing a large section of its customer base to unquestionably lapping its ‘coolaid’. In a bubble of blissful Apple-induced Stockholm Syndrome, these customers actually cheer the company on when it uses its massed profits to ruthlessly bankrupt and destroy any enterprising start-up arriving to help them with expanded hardware choices!

    The irony in all this of course, it that Apple’s iconic ‘1984’ TV advert was taken to show the massed ranks of computer users obediently transfixed by a corporate ‘big-brother’ dictating exactly what they could and couldn’t do and smashing any challenges… it turns out the advert was the company’s view of where it wanted APPLE to be in the world and the power it wished to eventually have over its customers.

    Judging by many of the bizarre warbled responses of the Christmas-voting Turkey Farm of MDN – its objective has been wildly successful. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  15. Twenty Benson – the resident village idiot.
    Apple KNOWS there are millions of people like me. Apple KNOWS that if it did not force us to continue using its hardware – even though it falls well short of actually meeting our needs – we would all be off TOMORROW… buying readily available hardware from professional companies who are keen to supply a broad range of choices, keen to listen to varying customer needs and respond with highly appropriate product offerings and keen to win my business in an open and competitive free-market.

    Because Apple knows this for a FACT – it acts aggressively to close down any young aspiring hardware business that attempts to enter the market providing OS X customers with extended hardware choices that meet their needs. Behind all its glossy, girlie, left-wing marketing hype, Apple is a ruthless, greedy multi-national player – forever exploiting the law to ensure customers are kept locked-in and free-market competition is kept locked-out as a means of squeezing as much profit as it possibly can out of its imprisoned user-base.

    Behind all your useless and incessant rambling, you are a thief, a jerk, and a liar. Apple fanboys can be annoying but you are far far worse. Apple fans love their products and think they are the best ones made. They want everyone else to see the same joy of using them as they do.

    Entitlement minded people are really some of the worst scum of the entire human race.

    I really mean that in a big way. Every genocide, every case of human slavery, all stems from one thing: greed. The idea that you are entitled to something that someone else has. You are not.

    The idea that you are fundamentally serving a very very evil purpose of greed and larceny and at the same time calling Apple tyrannical is the worst form of hypocrisy. Simply embarrassing, and disgraceful.

    But by all means keep posting your vile and odious nasty rants, keep insulting people that like Apple products on an Apple fan blog (shocking). We are all dying to hear everything you have to say, it’s so insightful and I’m sure many of us have never heard these arguments before. Please continue.

  16. The trouble with having Apple as the only source of Mac-compatible hardware is that when their quality drops (and drops), there’s nowhere else to go.

    Previously I wouldn’t have worried but after the 27″ iMac fiasco I really have my doubts about Apple’s long-term viability as a top-quality supplier. I mean, talk about shoving stuff out the door and just having a policy to treat early adopters as guinea pigs. I guess it’s been going on for years, but seriously THREE different machines which have taken two months to arrive for a grand total of 5 use days? We’re still not even sure the next replacement will be acceptable.

    I hate to say it but I’ve lost my faith, and wish that people like Psystar were more prevalent. At least then it wouldn’t be a choice between “shit Apple gear” and “Windows”.

    🙁

  17. @DX
    “The trouble with having Apple as the only source of Mac-compatible hardware is that when their quality drops (and drops), there’s nowhere else to go.”
    Welcome to the Apple lock-in. Not only ‘quality’ dropping, but ‘breadth-of-choice’ dropping too.

    “I mean, talk about shoving stuff out the door and just having a policy to treat early adopters as guinea pigs…”
    My sympathies. Apple do it because they know they can get away with it… until the law changes and they are forced to have healthy competition.

    “I hate to say it but I’ve lost my faith, and wish that people like Psystar were more prevalent. At least then it wouldn’t be a choice between “shit Apple gear” and “Windows”.
    As a customer I agree with you – but as Psystar has shown, Apple will call in its ‘heavies’ (ref: 1984 advert) to make sure OS X users can never, ever buy from an enterprising hardware competitor.

    Introducing free-market competition can only ever be healthy for Apple. It would force the company to stop dictating to OS X customers what hardware they must use, it would force Apple to improve the quality of its own hardware and it would force Apple to immediately expand its narrow profit-grabbing product range from what it is currently constricted to. All this we can be absolutely sure of.

  18. @F. Maxwell

    Intelligent readers will already know we’ve had this discussion before. That you still refuse to pick up the points I place before you can only only be due to a severe bout of Stockholm Syndrome – which is hardly my problem.

    I have on a couple of occasions invited you to compare Apple’s current severely limited product range with hardware ranges offered for other operating systems and to think about what the differences are. For some reason I can only assign to Stockholm Syndrome you claim to be unable to do this… even though, as I have suggested, a 12 year old child with a reasonable education and access to the internet would take no more than 5 minutes to come up with an intelligent answer. Ditto with Apples previous product ranges – when the company cared more about meeting the needs of its various customer-bases than profit-pigging with swell its obscene bank balance.

    No doubt the same 12 year old could come up with a reasonable business model within which Apple could still operate as a successful company (although perhaps not creaming-off such greedy profits from its enforced lock-in) whilst the market is opened up to a dynamic, healthy competition in licensed OS X hardware from the free-market.

    As noted, Apple will never arrive at this position of its own accord… as long as it can continue fleecing locked-in OS X customers for outrageous profits and using those same profits to viciously crush any fair competition, the company will need to be dragged kicking and screaming into the cold light of the real business world… where it will have to up the quality and quantity of the stuff it makes to win customers from other companies doing the same.

    Once the rage of the Stockholm Syndrome has worn off, and once you get used to life without the self-imposed fence of the turkey-run, you will thank me for this – I promise ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  19. Update to this story according to Mac Rumors is that they are not done yet. They plan to go ahead with the florida case, (even though they don’t have a snowballs chance in hell of winning). Also will try and get there EFI software to be okayed by the judge even though that falls under the category as breaking the DRM of OSX as well as the license agreement. I think the owner of Psystar should pack it in as he will lose more money in on going court costs because what he’s going after just isn’t any different than what Judge Alsup has already ruled on in California.

  20. @F. Maxwell

    Don’t worry, when it comes to “erroneously failing” (LOL) it’s an unfortunate side effect of Stockholm Syndrome – as we have frequently seen in your “erroneously failing” to squirm out of facing the facts.

    As you know, the FACTS are that if Apple was forced to accept third-party hardware suppliers competing with its own pitifully limited offerings in an open and healthy free-market, MILLIONS of OS X users would choose from a much broader range of hardware supplied by Apple’s competitors (myself included).

    Obviously, these discerning customers would shop-around and make their buying decisions on what hardware solution best met their computing needs.

    You can huff and puff about this market truth until you are blue in the face – you can even carry on scribbling acres of verbiage claiming not to understand (or want) customer choice and free-markets. You can even continue refusing to look at the broad range of hardware available under your nose for other operating systems and make a simple comparison… but in all this you just continue digging yourself into a hole and confirming everyone’s impression that you are suffering under a severe bout of Stockholm Syndrome.

    It sounds like you are unable to use ANY OS without feeling the need to become a ‘fanboi’ – and your very recent jump from being a Windows fanboi to becoming a Mac fanboi involved swopping one state of blissful denial for another… that would explain the absence of any intelligence or coherence in your “erroneously failing” responses.

    On a previous thread I offered you the chance of stepping outside of your Stockholm Syndrome bubble so that our exchange could make progress. You refused to show me you can think for yourself by making the very simple comparison I asked you for… so I had no choice but to end the exchange. I have now given you another chance and see you still are clinging to your ‘ignorance is bliss’ dead-end.

    @Gabriel

    That’s good news that Psystar has its website back up. RebelEFI, of course, is no different to programs like Parallels and enable hardware to run a choice of operating systems. I really hope the company can make a success out of its version… but no doubt the enterprising Psystar will have to overcome Apple’s vicious hypocrisy and refusal to release OS X users from its highly lucrative hardware lock-in scam along the way.

  21. @ Twenty Benson – Please seek professional help.

    The madman is not the man who has lost his reason. The madman is the man who has lost everything except his reason.

    The madman’s explanation of a thing is always complete, and often in a purely rational sense satisfactory. Or, to speak more strictly, the insane explanation, if not conclusive, is at least unanswerable; this may be observed specially in the two or three commonest kinds of madness. If a man says (for instance) that men have a conspiracy against him, you cannot dispute it except by saying that all the men deny that they are conspirators; which is exactly what conspirators would do. His explanation covers the facts as much as yours. […]

    Nevertheless he is wrong. But if we attempt to trace his error in exact terms, we shall not find it quite so easy as we had supposed. Perhaps the nearest we can get to expressing it is to say this: that his mind moves in a perfect but narrow circle. A small circle is quite as infinite as a large circle; but, though it is quite as infinite, it is not so large. In the same way the insane explanation is quite as complete as the sane one, but it is not so large. A bullet is quite as round as the world, but it is not the world. […]

    Such is the madman of experience; he is commonly a reasoner, frequently a successful reasoner. Doubtless he could be vanquished in mere reason, and the case against him put logically. But it can be put much more precisely in more general and even aesthetic terms. He is in the clean and well-lit prison of one idea: he is sharpened to one painful point. He is without healthy hesitation and healthy complexity. […]

    And I have described at length my vision of the maniac for this reason: that just as I am affected by the maniac, so I am affected by most modern thinkers. […] They all have exactly that combination we have noted: the combination of an expansive and exhaustive reason with a contracted common sense. They are universal only in the sense that they take one thin explanation and carry it very far. But a pattern can stretch for ever and still be a small pattern. They see a chess-board white on black, and if the universe is paved with it, it is still white on black. Like the lunatic, they cannot alter their standpoint; they cannot make a mental effort and suddenly see it black on white.

    – from Orthodoxy by G.K. Chesterton

  22. Many analogies have been offered to the Apple/Psystar case which mostly fail to draw a good-enough correlation to understand what is going on.

    I think that looking at the events within broadcasting in the UK back in the 1960’s provides a very good parallel with what Apple is trying to do now – and why it will ultimately fail.

    Back in the 60’s the UK government had total control over UK broadcasting. Through the BBC, it provided listeners with three national stations and refused to issue any licences to third-parties to broadcast alternatives. However, many people felt the government’s stolid and polished limited offerings failed to meet their needs. In response to this situation, ‘pirate’ stations emerged from ships anchored just outside UK territory and broadcast dedicated, customised programming – which quickly became very popular with UK citizens. The BBC, of course, began losing huge ‘market-share’ to these enterprising new upstarts and the government, fearing its loss of total control, began issuing dire legal threats to both the pirate stations and to their millions of listeners. It tried every trick in the legal book to close down the stations and frequently threatened the UK population that it was illegal to tune in to them. But still the stations grew in popularity.

    Here we can see a direct correlation between the attitude of the UK government and Apple:
    – BOTH have provided a severely limited ‘product’ range which patently fails to meet the varying needs of a locked-in ‘customer’ base.

    – BOTH have aggressively tried to crush any enterprising challenge to its lock-in (threatening both the suppliers and the clients of alternatives).

    – BOTH have attempted to cling hold of their total control of the ‘market’ by being heavily negative about the public’s alternative choice.

    – BOTH have attempted to establish the idea that it would somehow be the ‘end of the world’ if its competitors are allowed to establish themselves.

    – BOTH have refused point-blank to issue and manage licences to alternative suppliers who are more able and willing to meets varying customer-needs.

    The moral of this story? The UK government eventually had to concede its lock-in and substantially broaden its product range to begin meeting varying customer needs. It also had to accept the presence of healthy competition within the marketplace and issue licences to legal commercial stations to broadcast (under a strict framework managed by a UK government agency). Of course, none of this revolution turned out the be the ‘end of the world’ for the government-funded BBC – in fact the corporation flourished as it quickly broadened and improved its product range to compete with the alternatives – in many instances hiring staff from the old ‘pirate’ stations so that its output could equal the quality of those stations and really begin meeting customer needs.

    Apple, of course, haven’t yet reached this point in their evolution (the company is still kicking and screaming to hang on to its lock-in in exactly the same way the old BBC did)… but all the pieces are lining up for Apple’s necessary comeuppance in the near future. And we can all know the change will bring nothing but good for the customer AND for Apple itself.

  23. You’re wasting your breathe F. Maxwell. Anyone fanboi can mindlessly parrot Apple’s press releases. That’s precisely why I asked you to look at the broad range of hardware line-ups for other OS’s and make a note of the differences with the tiny line-up Apple markets to its lock-in customers. Until you do this, I remain convinced you are refusing to think for yourself (just like all those grey, nodding nerds in Apple’s iconic 1984 advert).

    You really aren’t helping yourself by trying to change the subject or pass the buck on to me (or anyone else). If you REALLY can’t find what I have asked you for, just say: “Twenty, I may be stupid but I’ve looked and I see no difference”.

    Then we can all move along… I can find someone who IS prepared to think for themselves to exchange with, and you can waddle off back to your fellow Stockholm Syndromers and continue blissfully warbling on together as MDN turkeys voting for Christmas.

    OS X users – SAY NO to Apple’s hardware lock-in scam!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.