Welcome | Sign In
MacNewsWorld.com
Apple Juice

Psystar's Open Computer: A $400 Rotten Apple Scam?

Print Version
E-Mail Article
Reprints
Psystar's Open Computer: A $400 Rotten Apple Scam?

If you're interested in buying a computer that's just like a Mac but will cost you a mere 400 bucks, you might also be interested in acquiring a sweet piece of slightly damp vacation property in Florida -- or your very own historic bridge.


From Laid-Off to Entrepreneur: Launching a Web Biz on a Shoestring. "That day" has arrived. For whatever reason, the job you’ve been working for years is no longer there for you. Times are tough; people are facing unemployment in droves. In today's economic age, however unfair, it's a reality. What do you do now? [Download PDF: 10 pgs | 558k]

News of a US$400 Mac clone on the market spread like wildfire this week -- only to be supplanted by suspicions that the offering may well be a giant fraud.

The first inkling that something was wrong came when a message appeared on the Web site of the mysterious vendor, Psystar, stating it could not take orders over the phone but only via the Internet. The Web site has been online, then off, and then on again, ever since news of the phenomenal bargain reached critical mass on Monday.

Attempts to reach the company, meanwhile, have resulted in a stream of odd statements turning up in press accounts, including comments from an employee identified only as "Robert," who basically said that Apple's (Nasdaq: AAPL) grip on the Mac market constituted a monopoly, and that Psystar was ready to mount a legal challenge.

Nigeria Bound?

Later, other reporters were able to speak with the company's president, Rudy Pedraza. Pedraza apparently told Engadget reporter Nilay Patel that the Open Computer and quad-core OpenPro have been shipped to a few customers already.

Patel did better than his counterpart, who spoke with the elusive Robert. He cadged a promise from Pedraza to send him one of the much sought-after machines.

Other evidence points to the possibility of fraud -- or at least something seriously hinky going on with Psystar. The Web site began operating very recently. It is registered to a residence in Miami. Shipping costs for the computer are outrageously high -- close to $100.

As one commenter to the many articles posted about the Psystar offering stated, giving credit card information to the Web site was probably tantamount to sending it to Nigeria.

Apple's EULA

Even if one were to accept at face value that Psystar is what it says it is -- a small vendor overwhelmed by an onslaught of unexpected publicity and heavy demand -- it is hard to dismiss the serious legal issues the company would be facing if it were indeed selling Mac clones.

Apple's End User License Agreement explicitly states that its operating system can be installed only on an Apple-labeled computer.

"Apple has very clear license provisions that clearly prohibit what Psystar is doing," Tim Connors, a partner at the Cleveland-based law firm of Calfee, told MacNewsWorld.

Assuming the company is willing to challenge Apple on the grounds of antitrust, "it would need a very knowledgeable and creative antitrust counsel," he said dryly. "I would be very interested to hear what is [Psystar's] definition of 'antitrust.'"

Plus, the $400 would not be the full cost to the consumer, he noted. "You have to buy the operating system on top of that, for which you won't get any support Learn how SugarCRM will improve your business. Free Trial. Click here.. And you probably won't get support from Psystar, as Apple's legal maneuvers would crush them out of business."

Assuming they were in business to begin with.


Print Version E-Mail Article Reprints More by Erika Morphy


Related News Alerts

Apple Activate Alert | Search Archives

More by Erika Morphy

Palm Beats Itself to a Pulp
March 19, 2010
Palm's inability to excite consumers over the Pre is a colossal marketing failure, suggested Patrick Gilbert, CEO of 4Smartphone. "This is not a tech or design issue -- the problem is they haven't been able to reach out to users or the developer community," he said.
Survey Totes Up Value of Excellent Online Customer Service
March 19, 2010
There's gold in the e-commerce hills for companies willing to take their customer service to a higher level. Consumers are willing to pay almost 11 percent more to get excellent customer service along with their purchases, according to an Ovum survey, yet few e-tailers meet that standard. Heading a list put together by StellaService, which commissioned the study, are Zappos.com, Diapers.com and BlueNile.com.
Twitter Flies the Coop
March 16, 2010
Twitter has found a way to flit around to other Web locales through a feature called "@anywhere." Amazon, eBay, The Huffington Post, YouTube and others will be able to open a Twitter window to users, allowing them to send and receive messages without leaving the site. Social media marketers are salivating at the possibilities.
Don't miss a story -- sign up for our FREE e-mail newsletters and view the latest headlines at a glance.
Tech News Flash [ View Sample ]
E-Commerce Minute [ View Sample ]
ECT News Network Weekly Newsletter [ View Sample ]
Shortcuts
ECT News Network Information
Reader Services
Corporate
ECT News Network