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Apple Unveils PowerPC Line, Challenging Intel's Dominance

Strategic Insights

— 1 min read

Apple Computer has introduced its PowerPC line of computers that can run both Macintosh and IBM software, marking a significant move to challenge Intel's market dominance. The new line, developed in collaboration with International Business Machines Corp. and Motorola Inc., promises to offer the power of a workstation with the affordability of mainstream personal computers. With the capability to run applications for Macintosh and Microsoft-DOS and Windows, Apple is targeting a significant share of the market.

Key Takeaways:

  • Apple has developed the PowerPC line in collaboration with IBM and Motorola to cut into Intel's market share, which controls about three-quarters of the world's market for microprocessors.
  • The PowerPC line is expected to ship 1 million units over the next 12 months, with 150,000 units already on order, more than the Pentium had in all of 1993.
  • Apple's new computers offer the power of a workstation, with the affordability of mainstream personal computers, and have the capability to run applications for Macintosh and Microsoft-DOS and Windows.
  • The PowerPC line is priced aggressively, ranging from $1,819 for a 60 MHz model to $4,249 for an 80 MHz model loaded with 16 MB of RAM, a 500 MB hard drive, and Soft Windows software.
  • The PowerPC line has left Pentium-equipped computers behind on various applications, demonstrating its superiority.

Statistics:

  • Intel controls about three-quarters of the world's market for microprocessors.
  • Apple has sold 6 million Macintoshes, compared to Intel's 40 million chips sold to IBM and IBM-clone companies.
  • 150,000 PowerPC units are already on order, more than the Pentium had in all of 1993.
  • Apple expects to ship 1 million PowerPC units over the next 12 months.
  • The PowerPC line ranges in price from $1,819 to $4,249, depending on the model.

Sources:

  • Apple Computer, press release, March 14
  • Apple executive vice president and general manager of PC development, Ian Diery, at the PowerPC unveiling
  • Michael Spindler, Apple's president and chief operating officer, at the PowerPC unveiling.

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