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

iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Coming Soon With These 14 New Features

Friday July 4, 2025 1:05 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are just over 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:Apple logo repositioned: Apple's logo may have a lower position on the back of the iPhone 17 Pro models, compared to previous...
iphone 16 pro models 1

Here's How the iPhone 17 Pro Max Will Compare to the iPhone 17 Pro

Saturday July 5, 2025 1:00 pm PDT by
Apple should unveil the iPhone 17 series in September, and there might be one bigger difference between the Pro and Pro Max models this year. As always, the Pro Max model will be larger than the Pro model:iPhone 17 Pro: 6.3-inch display iPhone 17 Pro Max: 6.9-inch displayGiven the Pro Max is physically larger than the Pro, it has more internal space, allowing for a larger battery and...
iPhone Car Key Kia

Here's Which Vehicles Offer iPhone Car Keys

Sunday July 6, 2025 3:03 pm PDT by
In 2020, Apple added a digital car key feature to its Wallet app, allowing users to lock, unlock, and start a compatible vehicle with an iPhone or Apple Watch. The feature is currently offered by select automakers, including Audi, BMW, Hyundai, Kia, Genesis, Mercedes-Benz, Volvo, and a handful of others, and it is set to expand further. Apple has a web page with a list of vehicle models that ...
imac video apple feature

Apple Launching These 15+ Products Later This Year

Sunday July 6, 2025 8:05 am PDT by
The calendar has turned to July, meaning that 2025 is now more than half over. And while the summer months are often quiet for Apple, the company still has more than a dozen products coming later this year, according to rumors. Below, we have outlined at least 15 new Apple products that are expected to launch later this year, along with key rumored features for each. iPhone 17 Series iPho...
iOS 26 Feature

Everything New in iOS 26 Beta 3

Monday July 7, 2025 1:20 pm PDT by
Apple is continuing to refine and update iOS 26, and beta three features smaller changes than we saw in beta 2, plus further tweaks to the Liquid Glass design. Apple is gearing up for the next phase of beta testing, and the company has promised that a public beta is set to come out in July. Transparency In some apps like Apple Music, Podcasts, and the App Store, Apple has toned down the...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro to Reverse iPhone X Design Decision

Monday July 7, 2025 9:46 am PDT by
Since the iPhone X in 2017, all of Apple's highest-end iPhone models have featured either stainless steel or titanium frames, but it has now been rumored that this design decision will be coming to an end with the iPhone 17 Pro models later this year. In a post on Chinese social media platform Weibo today, the account Instant Digital said that the iPhone 17 Pro models will have an aluminum...
iphone 17 pro render majin bu

New iPhone 17 Pro Renders Highlight Apple Logo and MagSafe Design Changes

Sunday July 6, 2025 8:43 pm PDT by
New renders today provide the best look yet relocated Apple logo and redesigned MagSafe magnet array of the iPhone 17 Pro and iPhone 17 Pro Max. Image via Majin Bu. Several of the design changes coming to the iPhone 17 Pro model have been rumored for some time, such as the elongated camera bump that spans the full width of the device, with the LiDAR Scanner and flash moving to the right side. ...
Prime Day 25 Feature Warm Triad

The Best Early Prime Day Deals on Apple Products

Saturday July 5, 2025 7:22 am PDT by
Amazon is soon to be back with its annual summertime Prime Day event, lasting for four days from July 8-11, the longest Prime Day yet. As it does every year, Prime Day offers shoppers a huge selection of deals across Amazon's storefront, and there are already many deals you can get on sale ahead of the event. Note: MacRumors is an affiliate partner with Amazon. When you click a link and make a ...
airpods pro 2

AirPods Pro 3 to Help Maintain Apple's Place in Earbud Market Amid Increasing Low-Cost Competition

Thursday July 3, 2025 7:25 am PDT by
Apple's position as the dominant force in the global true wireless stereo (TWS) earbud market is expected to continue through 2025, according to Counterpoint Research. The forecast outlines a 3% year-over-year increase in global TWS unit shipments for 2025, signaling a transition from rapid growth to a more mature phase for the category. While Apple is set to remain the leading brand by...

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)