Introduction:
The Rise and Fall of Apple’s Biggest Competitor
In the mid-1990s, Apple was at a crossroads. Sales were down, and the company was struggling to keep up with the fast-paced world of personal computing. However, a glimmer of hope appeared when Power Computing burst onto the scene. As one of Apple’s biggest competitors, Power Computing gave the tech giant a run for its money, but ultimately fell victim to the same fate as many other Apple rivals.
Founded in 1993 by CEO Steve Kahng, Power Computing was a company that aimed to bring the power of Apple’s Macintosh computers to the masses. With a team made up of former Apple employees and a goal of creating affordable and powerful products, Power Computing quickly gained a following among Mac enthusiasts.
Their first product, the Power 80, was a hit, offering up to 80 MHz of processing power at a fraction of the cost of Apple’s offerings. This success led to the release of the Power 100 and the Power 120, which featured even faster processors and better graphics capabilities.
But Power Computing’s most significant achievement came in 1995 when they released the Power Tower Pro. This computer boasted a whopping 200 MHz processor, making it the fastest personal computer on the market at the time. It was also the first Mac clone to support virtual memory, a vital feature for many creative professionals.
With their innovative products and aggressive marketing tactics, Power Computing quickly gained a significant share of the personal computer market. Their success caught Apple’s attention, and in 1996, Apple struck a deal with Power Computing to license the company to produce Mac clones.
When Apple Opened the Gates
In the early-to-mid 1990s, Apple was fighting for survival. Windows 95 was booming, Microsoft and Intel dominated the computing landscape, and Apple’s market share continued to shrink. In a move driven by desperation, Apple made a risky decision that would go on to shape its trajectory for decades: they allowed third-party manufacturers to license the Mac OS and create Macintosh clones.
The most notable—and controversial—of these manufacturers was Power Computing, a Texas-based company founded in 1993. By 1994, Power Computing had secured a licensing deal with Apple and rapidly became a dominant force in the Mac clone market. But by 1997, that entire ecosystem collapsed when Apple bought back Power Computing’s Mac business and killed off the clone experiment altogether.
This article explores the rise, success, and downfall of Power Computing and what it teaches us about control, innovation, and brand identity in tech.
Apple’s Clone Strategy: A Risky Expansion Plan
The Context
In the early ’90s, Apple was losing ground. Windows PCs were cheaper and more versatile, and Apple’s tight grip on its hardware and software ecosystem was limiting market growth. In 1994, the company tried to emulate Microsoft’s model by licensing the Mac OS to third-party manufacturers.
The Birth of Mac Clones
Under this new licensing strategy, companies could build their own hardware that ran Apple’s operating system. The goal was to expand the Mac ecosystem and reach markets Apple hadn’t tapped into. This strategy was led internally by Apple’s then-CEO Michael Spindler.
Power Computing: The Poster Child for Mac Clones
Founding and Early Ambitions
Founded by Stephen “Steve” Kahng in 1993, Power Computing quickly gained a reputation for building fast, affordable, and highly customizable Macintosh-compatible computers. In 1994, they became the first company licensed to ship Mac OS-compatible computers.
Market Disruption and Success
Power Computing’s models like the PowerTower Pro and PowerWave often outperformed Apple’s own Macs at a lower price. They focused on:
- Direct-to-consumer sales
- Aggressive marketing campaigns
- Highly modular systems
At its peak, Power Computing accounted for more than 10% of all Mac OS computers sold, shipping over 100,000 units in 1996 alone.
Notable Achievements
- Introduced multi-processor Mac systems
- Pioneered a direct-sales model later emulated by Apple
- Aggressively competed on price, forcing Apple to lower margins
Other Players in the Clone Market
Following Power Computing’s success, other companies joined the Mac clone race:
- Motorola
- Radius
- DayStar Digital
- Umax
However, none matched Power Computing’s speed, market penetration, or cult following.
Trouble Brews: Apple’s Backlash
Clones Cannibalize Apple’s Sales
While clones expanded the Mac user base, they did so at Apple’s expense. Power Computing’s aggressive pricing and faster hardware led many users to switch from Apple-branded hardware.
Apple began to suffer financially. The licensing strategy, rather than bringing in extra revenue, was eroding Apple’s brand value and market dominance.
Legal Conflicts
Power Computing wanted even more control and flexibility—like running Mac OS on Intel chips. Apple, meanwhile, was reconsidering the entire licensing strategy. Tensions escalated.
Steve Jobs Returns: End of the Clone Era
In 1997, Steve Jobs returned to Apple, and one of his first major moves was ending the clone program. He saw the clones as a threat to Apple’s core business and brand.
Jobs personally negotiated the buyout of Power Computing’s Mac business for $100 million in Apple stock. This move:
- Gave Apple control over Power Computing’s customer database
- Ended all licensing agreements
- Signaled a return to Apple’s closed, integrated ecosystem
Jobs’ decision would later prove vital in the company’s turnaround, leading to the iMac, iPod, iPhone, and the modern Apple we know today.
The Legacy of Power Computing
Though short-lived, Power Computing left an undeniable mark:
- Performance-first culture: Their machines pushed Apple to improve its own hardware.
- Direct sales: Their model influenced Apple’s future sales strategies.
- Innovation under pressure: Multi-processor support and expandability became expectations.
The clone era also taught Apple a critical lesson: control over hardware and software is key to maintaining brand integrity and profitability.
Final Thoughts
The story of Power Computing is a fascinating look at Apple’s experimental phase—a brief moment when the company flirted with open platforms. While it ultimately failed, the experiment provided valuable lessons that shaped Apple’s resurgence.
To explore more stories about computing innovation and hardware history, visit our tech insights section at LDAS.ca.
