Initial machines
The initial clones were available in desktop and tower configurations, and were based on the PowerPC 601 80 MHz, 100 MHz and 110 MHz microprocessors. They were comparable to Apple Computer's Power Macintosh 7100 and 8100 class of computers. Pricing ranged from $1,995–2,899.
Unlike Apple at the time, Power Computing pressed for direct sales. After a customer placed an order for a semi-customized configuration, the system was delivered the next day. Following the delivery of the system, Power Computing called the customer to surmise their needs and offer technical support and customer service. In addition, Power Computing set a goal of a 3-minute response time for all inquiries.
In May 1995, shortly after the original clone announcement, Power Computing teamed up with Austin, Texas based Metrowerks to offer the Power Computing CodeStation. The CodeStation was a package consisting of the recently announced Power Series clone, rebranded and bundled with the latest PowerPC version of CodeWarrior (CW6 Gold which introduced Magic Cap support). CodeStations were sold through Metrowerks at discounted developer prices and it is unknown exactly how many units were sold.
At the end of July 1995, Power Computing announced that it had successfully ramped the volume production capability of its Power 100 system. The efficiencies provided by volume production allowed Power Computing to lower the base configuration price of a "Power 100 Starter System" to $1,699. In addition, the company instigated a comprehensive quick-ship program that allowed popular configurations to ship the same day. Power Computing advertised models up to the "Power 120 XL", a $5,499 machine built around the PowerPC 601+ chip, a 2GB SCSI hard drive, 17 inch Sony monitor, 4X-speed CD-ROM, built-in Ethernet, and 32MB RAM.[5]
At the end of October 1995, Power Computing introduced the world's fastest Macintosh-compatible computer, the PowerWave, based on the PowerPC 604 microprocessor. Per an article in the Austin American-Statesman, Power Computing said its machine would far outperform Windows-compatible machines based on Intel's Pentium processors.
At the early 1996 Macworld trade show in San Francisco, Power Computing found itself the star attraction because Apple was so preoccupied with its mounting financial woes that then-CEO Michael Spindler cancelled an appearance. PCC got another break when a computer firm that had spent $170,000 erecting an immense booth pulled out at the last moment, allowing Mr. Kahng to pick up the prime exhibiting space for $30,000.
At that Macworld, the PowerCurve — a line of mid-range, CPU-upgradeable Mac OS systems based on the PowerPC 601 and the industry-standard PCI expansion bus — was introduced. Unique to the PowerCurve 601/120 was the native support of VGA–style monitors.
- “Power Computing's system design (except for the clock-oscillator chip that controls the CPU and bus speed, the two models' motherboards are identical) suggests a thoughtful, sophisticated approach. This sophistication derives, in part, from help from Apple, as well as from the fact that two key Apple engineers recently joined Power Computing.”[4]
Market success
In May 1996, just one year after Power Computing started selling Mac clones, the company reached the 100,000 units sold milestone. The number of employees had grown to 300. And as noted in an article in The Wall Street Journal (WSJ) by Jim Carlton, Power CEO Steve Kahng “still hasn’t taken his (golf) clubs out of the bag” (he had vowed not to play another round of his beloved golf until he had shipped the first 30,000 Mac clones).
That same WSJ article noted that one-half of Power Computings's customers represent people who would have otherwise purchased a computer from Apple. The others are people who might have bought a non-Mac computer.
In June 1996, Kahng persuaded a unit of Lockheed Martin to buy 3,000 of his computers rather than Apple's. Though a longtime Apple customer, Lockheed Martin said Power beat out Apple's bid by agreeing to such extras as loading in special engineering software before shipping the machines out, a request that Apple declined. This was the largest sale in the history of Macs or Mac-compatible computers at the time.
Kahng was able to leverage his strong relationship with IBM to get access to the fastest PowerPC processors sooner than anyone else. As a result, starting in April 1996 and continuing through 1997, Power Computing regularly put out the fastest computer system in either platform (Mac OS or WinTel).
By 1997 Power Computing had reached $400 million in annual revenue, and reviews consistently rated its products as better than Apple's. At Macworld Expo 1997, the company presented a military-themed campaign that urged the Mac faithful to “Fight Back.” Power Computing employees were outfitted in camouflage. The video wall looped “why we fight” propaganda. And “Steve Says” posters, flyers and T-shirts were ubiquitous inside the Moscone Center
Acquisition of assets by Apple
In early 1997 Apple indicated that it wanted much higher license revenue from clonemakers, and other conditions. In June it and Power Computing tentatively agreed to new terms. The deal was not finalized before the July 9 departure of Apple CEO Gil Amelio, and his de facto replacement Steve Jobs sought to end or greatly diminish the clone program. Jobs believed that Apple had started to license clones too late to repeat the business model pioneered by Microsoft in the early 1980s.
At MacWorld Boston in August, Power Computing President Joel Kocher unsuccessfully tried to convince attendees to rally against Apple's stiff new licensing policies.[7] He and other executives resigned soon afterwards as Power Computing's board chose to be acquired instead.
On September 2, 1997, Apple Computer bought key assets of Power Computing for more than $100 million in Apple stock and roughly $10 million in cash.[8][9] As part of the deal, Apple got back the license that allowed Power Computing to sell Macintosh-based machines, also obtaining "the right to retain key employees with expertise in direct marketing, distribution, and engineering".
