Originally Posted by Trajectory
I'm all for rooting for the underdog, but, I think in this case Psystar is being purposely obtuse and vague. Any company that has investors and spent millions on R&D is going to have financial statements. Their excuses seem dubious at best.
Indeed it does. Let's assume for a second that Psystar really is a coupe, of rebellious cowboys in the AMerican equivalent of a Garden Shed. Lt us then assume that this business is "volume purchasing" (I use the term loosely owing to the low volume of sales) its parts from conventional dealers, and not directly from manufacturers. Tey are assembling the machines and installing the OS themselves. :et's spec up a Psystar and a Dell to match roughly on power:
Core2 Duo E7400
Genuine Windows Vista Home Premium/Mac OS X 10.6 Leopard
500GB Serial ATA 7200RPM HDD
16xDVD+/-R Drive on the Dell, 20xDVD+/-R Drive on the Psystar
Radeon HD 4670 512MB on the Dell, GeForce 9500GT 512MB on the Psystar
Our Dell runs us $689.
Our Psystar? A cool $723.99. Switching to a 9400GT drops it to $674.99.
Now, since Dell is one of the largest PC manufacturers in the world and buys its components direct form manufacturers at substantial economies of scale, it is surprising that some cowboys are able to sell a comparable system within $100. And by that, I mean it would be surprising if they enjoyed the same OS pricing.
They do not. Dell most certainly do not pay Microsoft $129 for Windows per machine. Estimates put the number at $50 or lower. Tell me then. How is it that a manufacturer, who are building machines by hand, and paying more than twice as much for their OS, able to compete on price with a giant like Dell?
That Psystar can build a machine at such a similar cost is absolutely absurd. There is no way they can make profit on that, they'd be lucky to break even. Dell itself has razor thin margins. A couple of yahoos in a garage couldn't possibly compete on price.
How then can Psystar possibly be a going concern? It has to have revenue coming in from elsewhere. And think of it like this. Who gains from Psystar winning this thing? Not Psystar themselves, no way. Microsoft? Nope, they lose out massively. Apple's rivals, who make PCs? They stand to gain a great deal - namely OS X, which many of them have been after for years.
There is more evidence that Psystar is
a front Company than there is evidence it actually exists. But the question remains, who is behind it? Clearly, it is someone Apple is competing with. The question is which of the many businesses going toe-to-toe with Infinite Loop are involved?
But say for a moment, you don't think there's enough evidence to say it's some wider conspiracy. Let's do some roleplay. You're a venture capitalist, I'm Psystar:
"Hello, I'm a nobody who just got out of College. Me and my associate here don't know much about running a business, but we'd like to sell computers with OS X on them for less than Apple sells theirs for and at prices competitive with PC makers...We think it's legal...Maybe...Anyway, we need like half a million dollars to get a foothold in this market and since we aim to compete on price, our profit margins will be razor thin even where we actually have them - often we'll be selling at BE or lower - there won't be much return on your investment.