Motorola quits Mac market; PowerPC fades

In what can only be described as an obvious move, given Apple's position toward the few remaining clone makers, Motorola has decided to pull out ofthe Mac clone market, and will take a $95 million charge this quarter todo so. Additionally, the Motorola Computer Group (MCG), responsible forthe company's Mac clone designs, is expected to be dropped in a pending company reorganization.

Sadly, Apple's infighting with the clone makers may have more far-reachingramifications than just this. Motorola, who, with IBM, makes the PowerPC microprocessor that powers all Macintosh computers, is targeting new chipdesigns at non-PC markets. This means that new, high-end CPUs needed forApple Computer to remain viable will be slow to market. Despite years ofhype and a RISC-based scalable architecture, the PowerPC has had virtuallyno impact on Intel, makers of microprocessors for Windows-based PCs. Now,Motorola is hoping to find a market they can effectively compete in. NewPowerPC chips will be designed for larger markets, such as embedded systemsand handheld PCs that run Windows CE, not for the Macintosh.

Adding further to the split-up: IBM is relinquishing its claim on theMacOS and will not license it further. Because Apple has violated the termsof its agreement with IBM and Motorola, IBM is looking to redefine its contractual agreement to supply Apple with CPUs. Though Motorola and IBMboth manufacturer PowerPC chips right now, in the near future only IBM willbe physically making the chips, though Motorola will still aid in the design. Right now, relations between Apple and IBM are tense.

Sensing the problems ahead, Apple is looking into other chips, includingones from Intel. In the meantime, Apple is refusing to buy the newestchips from Motorola or IBM unless they are discounted up to 50%. Since Apple is basically the only customer for these chips now, Motorola and IBMare left to reduce prices or not sell them at all. If this stance holds,the decision is clear: they will just stop making them. The market for newMacs is just not big enough to justify the research and development ofPowerPC microprocessors anymore