Steve Jobs Asked Dell to Pre-Install Mac OS on PCs and Pay Hundreds of Millions in Royalties

The 10 year anniversary of Steve Jobs death took place earlier this week, sparking tech leaders to share their stories of Apple's former CEO.

cnet michael dell steve jobs
Dell CEO Michael Dell spoke to CNET, reminiscing about the time that Steve Jobs aimed to get Dell to license Mac OS to run on Intel-based PCs and how that might have changed the PC industry.

As the story goes, Jobs first approached Dell about a partnership after being ousted from Apple and establishing NeXT. Jobs wanted Dell to use the NeXT operating system on Dell PCs, and he claimed that it was better than Windows.

Dell told Jobs that it wasn't going to happen because there were no applications for it and "zero customer interest."

After Jobs rejoined Apple, he once again attempted a software licensing deal, trying to get Dell to license Mac OS. At the time, Jobs pushed Dell by telling him PC buyers could choose between Apple's software or Microsoft Windows.

"He said, look at this - we've got this Dell desktop and it's running Mac OS," Dell tells me. "Why don't you license the Mac OS?"

Dell thought it was a good idea and wanted to pay Jobs a licensing fee for every PC sold with Mac OS, but Jobs was worried about PC sales cannibalizing Mac sales because PCs were cheaper. Jobs instead wanted Dell to load Mac OS alongside Windows on every PC, which would have cost Dell hundreds of millions in royalties.

Dell smiles when he tells the story. "The royalty he was talking about would amount to hundreds of millions of dollars, and the math just didn't work, because most of our customers, especially larger business customers, didn't really want the Mac operating system," he writes. "Steve's proposal would have been interesting if it was just us saying, "OK, we'll pay you every time we use the Mac OS" - but to pay him for every time we didn't use it ... well, nice try, Steve!"

The royalty cost dissuaded Dell from the deal, as did the lack of a guarantee that Dell would continue to have access to Mac OS years in the future. Dell customers could be out of luck as the software evolved, with no way for Dell to offer support.

Dell said that had that deal gone through, "It could have changed the trajectory for Windows and Mac OS on PCs." In a 2005 interview, Dell said that if Apple "opened the Mac OS to others" Dell would be happy to offer it to customers, but that did not happen and Apple kept Mac OS exclusive to Macs.

Though a software deal was never reached, Dell said that he remained friends with Jobs over the years despite various arguments. Dell one time was asked what he'd do to fix Apple if he was CEO, and he said "I'd shut the company down and give money back to shareholders," which angered Jobs.

Jobs ultimately used the quote from Dell to motivate his team, which Dell respected. "I probably would've done much the same thing if I was in his position," Dell told CNET. "When the company you started is fighting for its life, you do whatever it takes."

Michael Dell's story about Mac OS X is featured in his newly published memoir, "Play Nice But Win," which also features stories of how he met Jobs, his infatuation with the Apple II, and how he developed a friendship with Jobs.

Tag: Dell

Top Rated Comments

Freeangel1 Avatar
19 months ago
YES!!
DO IT NOW!!
Mac Hardware SUCKS!! So many faulty and burned out video cards over the last 20 years.

I saw the future in Intel Chips.

The 12th generation Intel Chips are going to WASTE APPLE silicon.
Score: 30 Votes (Like | Disagree)
TheYayAreaLiving ? Avatar
19 months ago

Sometimes Jobs was the brilliant ideas and marketing man that we all know brought us the Macintosh, iPod, iPhone and iPad.
Other times, he was the absolute idiot who tried to stop third parties from developing for the iPhone, said people would never buy an E reader because people just don’t like reading, tried to call the original iMac the MacMan… and did this
He was trying to save Apple and establish the business model. He did whatever it took. That’s how business is.

Jokes on Dell today!





Attachment Image

Attachment Image
Score: 26 Votes (Like | Disagree)
Asarien Avatar
19 months ago

He was trying to save Apple and establish the business model. He did whatever it took. That’s how business is.

Jokes on Dell…
That's what's wrong with mentality like yours. I don't know Michael Dell, and his business isn't nearly as rich as Apple, but he seems like a genuine person who is happy with his level of success. I'd rather be successful and happy, than be tortured and "misunderstood" for the sake of being branded a genius, and to win at all costs.

In the end, Job's lack of humility did him in, and how truly happy was he when he died?
Score: 25 Votes (Like | Disagree)
Lounge vibes 05 Avatar
19 months ago
Sometimes Jobs was the brilliant ideas and marketing man that we all know brought us the Macintosh, iPod, iPhone and iPad.
Other times, he was the absolute idiot who tried to stop third parties from developing for the iPhone, said people would never buy an E reader because people just don’t like reading, tried to call the original iMac the MacMan… and did this
Score: 23 Votes (Like | Disagree)
Jeaz Avatar
19 months ago
For disclosure, I work at Dell.

While I'd never use Windows for personal use, and thus a Dell computer, I do like Dell as a company and Michael Dell. He's not the innovator or exotic personality as some of the other "big names in IT", and while I have only met him in passing, he does seem like a nice guy.
Score: 22 Votes (Like | Disagree)
vipergts2207 Avatar
19 months ago

He was trying to save Apple and establish the business model. He did whatever it took. That’s how business is.

Jokes on Dell…




You misunderstand what the quote you posted is trying to say. Michael Dell's personal holdings in Dell is worth $40 billion. He's the 23rd wealthiest person in the world. Just for comparison, Jobs was worth only $10 billion when he died and Cook (though not an entrepreneur) is only worth $1.4 billion.
Score: 16 Votes (Like | Disagree)

Popular Stories

maxresdefault

Apple Announces WWDC 2023 Event Taking Place June 5 to 9

Wednesday March 29, 2023 9:58 am PDT by
Apple today announced that its 34th annual Worldwide Developers Conference will take place from Monday, June 5 to Friday, June 9. Like WWDC 2020, 2021, and 2022, WWDC 2023 will be an online event for the most part, and it will be open to all developers at no cost. Subscribe to the MacRumors YouTube channel for more videos. Apple will provide online sessions and labs, which will allow...
iPhone 15 Pro Buttons CAD Leak

iPhone 15 Pro Low-Energy Chip to Allow Solid-State Buttons to Work When Device is Off or Out of Battery

Wednesday March 29, 2023 1:54 am PDT by
The iPhone 15 Pro and Pro Max will use a new ultra-low energy microprocessor allowing certain features like the new capacitive solid-state buttons to remain functional even when the handset is powered off or the battery has run out, according to a source that shared details on the MacRumors forums. CAD-based render of new solid-state buttons on iPhone 15 Pro models The source of this rumor is ...
CarPlay Phone Call

General Motors to Phase Out Apple CarPlay Starting This Year in EV Transition

Friday March 31, 2023 8:43 am PDT by
General Motors (GM) will phase out Apple CarPlay and Android Auto in its vehicles starting this year, shifting to a built-in infotainment system co-developed with Google (via Reuters). GM owns Buick, Cadillac, Chevrolet, and GMC in the United States. It will stop offering Apple CarPlay and Android Auto starting with the 2024 Chevrolet Blazer, which goes on sale this summer. The company plans ...
iPhone 15 Pro Multi Purpose button Mute Switch Feature Green 2

iPhone 15 Pro Rumored to Feature Multi-Use Action Button Instead of Mute Switch

Wednesday March 29, 2023 7:28 am PDT by
iPhone 15 Pro and iPhone 15 Pro Max models are rumored to feature a customizable Action button like the Apple Watch Ultra, according to a MacRumors forum member who leaked accurate details about the Dynamic Island on iPhone 14 Pro models last year. The source claimed the Action button will replace the Ring/Silent switch that has been included on every iPhone model since 2007. They did not...
iOS 16

iOS 16.4 Now Available for Your iPhone With These 8 New Features

Friday March 31, 2023 8:55 am PDT by
Following six weeks of beta testing, iOS 16.4 was released to the public this week. The software update includes a handful of new features and changes for the iPhone 8 and newer. To install an iOS update, open the Settings app on the iPhone, tap General → Software Update, and follow the on-screen instructions. Below, we have recapped eight new features and changes added with iOS 16.4,...
iOS 17 on Phone Feature

Three New iOS Features Coming to Your iPhone Following Apple Music Classical

Thursday March 30, 2023 7:13 am PDT by
With the Apple Music Classical app and an Apple Pay Later early access program now available, the list of previously-announced iOS features that have yet to launch is beginning to shrink. However, there are still a few features we are waiting for. Below, we have recapped three more iOS features that are expected to launch in 2023, including an Apple Card savings account for Daily Cash,...
apple mixed reality headset concept by david lewis and marcus kane

Kuo: Apple Mixed-Reality Headset May Not Appear at WWDC as Mass Production Pushed Back Yet Again

Thursday March 30, 2023 4:50 am PDT by
Apple has again pushed back mass production of its mixed-reality headset and the device may not appear at this year's Worldwide Developers Conference (WWDC), Apple analyst Ming-Chi Kuo today said. Apple headset concept by David Lewis and Marcus Kane In a tweet, Kuo explained that Apple "isn't very optimistic" about whether the headset will be able to create an "iPhone moment." As a result,...