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TeePeed Off

There is an old saying about how the money is in the razor blade, not the razor. Transferring this to computers, I think, you could say the money is in the software, not the hardware used to execute it.

While that last statement can be debated (especially in regards to a hardware giant like Intel whose net revenue for 2004 was about $7.5 billion USD versus Microsoft's net revenue of about $5.4 billion (both numbers from their respective annual SEC Form 10-K filings and note they each have different fiscal years)), I still think the saying has some truth to it. YMMV. Insert disclaimer here.

To the extent that this is true, then I've often wondered why Apple doesn't put more emphasis on software instead of tying people to their hardware. I mean, what's the point of tying both together and, as a result, being relegated to a small niche segment of the huge technology market because your hardware is so expensive?

The latest example of where the market seems to want to go and, apparently, Apple doesn't is in its new flagship operating system OS X for PCs. This version is designed, as the name suggests, to run on the new Intel-based PCs that Apple is slated to start selling over the next few years.

However, the software is apparently locked to run only on Apple PCs with the so called "Trusted Platform Module" (TPM) chip installed. The software supposedly will not run unless the chip is present and said chips would come only with Apple approved hardware.

However, the inventive folks over at the OSX86Project are demonstrating that, yes Virginia, you can run Apple's operating system on $200 Intel systems without the TPM. Whether this is a GoodThing(r), or legal for that matter, is also debatable. But, I think this is the path the market seems to want to take.

In the final analysis, Jobs will do what Jobs will do. But, as another old saying goes: "Tell me which way the people want to go so that I may lead them there." is one way to sell a lot of razor blades (and software, too).

Aloha!

Comments (1)

sjon:

The money may be in the software but that software market is open for all commers. Apple knows that every hardware box sold is cass in it's coffers while not all software sold is cash in it's coffers.

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