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

Popular Stories

ios 19 messages app

Apple Sues Jon Prosser Over iOS 26 Leaks

Thursday July 17, 2025 8:40 pm PDT by
Earlier this year, YouTuber Jon Prosser shared multiple videos showing off what he claimed to be re-created renderings of what was then presumed to be called iOS 19 and which was eventually unveiled by Apple as iOS 26 at WWDC in June. In his first video back in January, Prosser showed off a Camera app redesign with a simpler set of buttons for moving between photo and video modes, and he...
iOS 26 on Three iPhones

Here's When to Expect the iOS 26 Public Beta

Tuesday July 15, 2025 11:07 am PDT by
Apple previously announced that a public beta of iOS 26 would be available in July, and now a more specific timeframe has surfaced. Bloomberg's Mark Gurman today said that Apple's public betas should be released on or around Wednesday, July 23. In other words, expect the public betas of iOS 26, iPadOS 26, macOS 26, and more to be available at some point next week. Apple will be releasing...
iPhone 17 Colors

All 15 New iPhone 17 and iPhone 17 Pro Colors Revealed in Latest Leak

Wednesday July 16, 2025 6:50 am PDT by
We may finally have a definitive list of all color options for the iPhone 17 series, ahead of the devices launching in September. MacRumors concept In a report for Macworld today, Filipe Espósito said he obtained an "internal document" that allegedly reveals all of the color options for the upcoming iPhone 17, iPhone 17 Air, iPhone 17 Pro, and iPhone 17 Pro Max models. The report includes ...
iPhone 17 Pro Dark Blue and Orange

Ranked: The Best Features Rumored for the iPhone 17 Lineup

Wednesday July 16, 2025 4:17 pm PDT by
We have just under two months to go until the debut of Apple's iPhone 17 models, and rumors have been ramping up in recent weeks. We went through everything we know so far, pulling out the most exciting rumors and highlighting some other changes that aren't going to be so great. Top Tier Ultra Thin iPhone 17 Air - The iPhone 17 Air is 2025's most exciting iPhone rumor, because it's the...
Foldable iPhone 2023 Feature Homescreen

Foldable iPhone's Thickness and Price Range Detailed in New Reports

Wednesday July 16, 2025 11:31 am PDT by
Apple's long-rumored foldable iPhone will likely have a starting price between $1,800 and $2,000 in the U.S., analysts at investment banking firm UBS said this week. If so, the foldable iPhone would cost more than a MacBook Pro, which starts at $1,599. With a starting price of at least $1,800, the foldable iPhone would be the most expensive iPhone model ever released, topping the Pro Max at...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Coming Soon With These 16 New Features

Friday July 11, 2025 12:40 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are only two months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models. Latest Rumors These rumors surfaced in June and July:A redesigned Dynamic Island: It has been rumored that all iPhone 17 models will have a redesigned Dynamic Island interface — it might ...
Apple Watch Ultra 2 Complications

Apple Watch Ultra 3: What to Expect

Sunday July 13, 2025 10:30 am PDT by
The long wait for an Apple Watch Ultra 3 is nearly over, and a handful of new features and changes have been rumored for the device. Below, we recap what to expect from the Apple Watch Ultra 3:Satellite connectivity for sending and receiving text messages when Wi-Fi and cellular coverage is unavailable 5G support, up from LTE on the Apple Watch Ultra 2 Likely a wide-angle OLED display that ...
Apple Hornsby

Apple Store Near Sydney Permanently Closing Later This Year

Monday July 14, 2025 6:14 pm PDT by
Apple today said its store at the Westfield Hornsby shopping mall, in Hornsby, Australia, will be permanently closing in October. Apple Hornsby In a statement shared with Australian tech news website EFTM (via Reddit), Apple said that it has decided not to renew its lease at Westfield Hornsby. Apple said all affected retail employees will be given the opportunity to work at Apple's nearby...

Top Rated Comments

Freeangel1 Avatar
49 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
49 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
49 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
49 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
49 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
49 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)