Historic Agreement Unites IBM, Apple, and Motorola in Revolutionary PC Standard

Strategic Insights -

In a groundbreaking move, International Business Machines Corp., Apple Computer Inc., and Motorola Inc. announced their commitment to develop computers that can run all major software programs, ending a long-standing difference in the way PCs operate. The three companies, who jointly developed the PowerPC chip, stated that their new hardware will support Microsoft Corp.'s Windows and Novell Inc.'s Netware 4, as well as their own operating systems. This historic agreement aims to establish a common platform for PCs, allowing them to run multiple programs seamlessly.

Key Takeaways:

  • IBM, Apple, and Motorola will develop computers that can run all major software programs, ending the historic difference in PC operation.
  • The new PowerPC hardware will support Microsoft Corp.'s Windows and Novell Inc.'s Netware 4, as well as IBM and Apple operating systems.
  • The common platform is expected to reach stores in the second half of 1996.
  • The agreement may be notable for what it didn't include: a software agreement between IBM and Apple.
  • IBM and Apple have backed away from licensing each other's operating systems to avoid competing with their own products.
  • The companies aim to stave off software giant Microsoft and chip maker Intel Corp., whose products run about 80% of the world's PCs.
  • Several computer makers and software developers have signed on to support the new PowerPC system, including Canon Inc., Novell, and Sun Microsystems Inc.
  • Analysts expect other vendors to sign on as the PowerPC gains credibility.
  • Only Apple currently produces PCs based on the new chip, while IBM expects to unveil PowerPC machines in the spring.

Statistics:

  • 10%: IBM and Apple's market share of the worldwide personal computer market.
  • 80%: The market share of PCs that run Intel Corp. products.
  • 1996: The year when the common platform is expected to reach stores in the second half.
  • 10%: The market share of PCs that will run the new PowerPC chip, currently held by Apple.
  • 2: The number of major software programs that the new PowerPC hardware will support, including Microsoft Corp.'s Windows and Novell Inc.'s Netware 4.

Sources:

  • Bloomberg Business News
  • IBM
  • Apple Computer Inc.
  • Motorola Inc.