How Sun Bought Apple Computer (Almost)

Hugh Pickens writes "There was a time in the 1990s when Sun, at its wealthiest, was poised to buy Apple when it was at the lowest point in its storied history and now eWeek reports on how the deal for Sun to buy Apple fell through. 'Back in late 1995 early '96, when we were at our peak, we were literally hours away from buying Apple for about $5 to $6 a share,' says former Sun CEO Ed Zander. 'I don't know what we were going to do with it, but we were going to buy it.' Sun co-founder Scott McNealy adds that there was an investment banker on the Apple side who basically blocked it. 'He put so many terms into the deal that we couldn't afford to go do it.' Would there be iPhones, iPads and iPods on the market today if Sun Microsystems had been able to close a deal to buy out Apple in the mid-1990s? No, says McNealy. 'If we had bought Apple, there wouldn't have been iPods or iPads ... I'd have screwed that up.'"

Comments

and nothing of value...

[Mr. Slippery]

No, says McNealy. 'If we had bought Apple, there wouldn't have been iPods or iPads ... I'd have screwed that up.'"

And nothing of value would have been lost. Perhaps, even, actual useful computing devices would have been developed, instead of shiny geegaws. Perhaps the Apple of Woz would have won out over the Apple of Jobs.

Re:He'd have screwed it up.

[Penguinisto]

Judging by what actually happened, the answer would be "yes", but the outcome would have differed, and taken far longer to realize overall. After all, there have been tablets for 10 years now, and portable mp3 players out long before the iPod.

I think that, while many like to deride Apple for many reasons, there is one thing that, at least IMHO, commands respect: Apple has a knack for producing products that folks like to use, in forms that make it drop-easy to do so... and in turn they do revolutionize the industry in question, forcing competitors to adopt, adapt, or perish.

Take the iPad... Microsoft and OEMs have had tablets out since 2001-2002 or so. OTOH, those products, well... sucked. They were expensive for what they did, the functionality was crap, the battery drained almost as fast as the laptops did, and the UI was ill-fitted for the job. Then the iPad comes along - a bit limited in flexibility, but almost perfect for the form-factor and what folks expected of it. Battery life is insanely long. The UI is almost perfect for fingers (stylus? who needs that?) And everything about it just seems to 'click' with the non-techie public.

Almost immediately, and like *every other Apple product*, competitors (including Microsoft) begin aping the thing... and in a repeatable progression: First we see a ton of vaporware and 'concept' demos, then massive promises (most of which fall short), then out comes the blatant (and undeniably crap) imitators, and finally, a long time later, some competitors begin trickling in with a few halfway decent competitors... af first falling well short of the mark, in spite of being somewhat decent products in their own right. Eventually the competition becomes almost as capable, perhaps surpassing the Apple product - but by then Apple has the market pretty much sewn up - if not in marketshare, then in profit share. The iPod was like this. Even the iPhone is like this.

I think OTOH that Sun would have dickered around, then come out with a few enterprise-oriented versions, then let them each die, while more consumer-oriented competitors would have picked up the torch and limped along.

I do have to give props to Apple for one thing - without them, most consumer-oriented tech would have likely progressed a whole lot slower than it has. I also think that a lot of corollary bits (e.g. digital music licensing, apps, mobile smartphones, etc) would have been slowed down, if not stalled completely. I say this because Microsoft would have just sat around for the most part, and Linux would have had a much harder time getting anywhere (esp. w/o Google jump-starting things). I mean, sure, there are things that have moved along and disrupted tech nicely w/o Apple, but when you examine them (netbooks for instance), they're not much more than incremental iterations of existing products... not complete disruptors.

Total Perspective Vortex

[Matey-O]

I love the trolls' complete and total lack of objectivity. Hundreds of millions of iDevices sold, arguably the first economically successful tablet, a company that could turn on a dime and recreate their hardware jumping from PPC to Intel, and OS 9 to OS X in a seamless fashion, and gain enough financial success to ecplipse Microsoft...and yet 'nothing of value is lost'.

Here's a hint for the younguns: There's room for more than one successful company in the world, and one being successful doesn't mean no others will be. If you don't like 'em, don't buy 'em...but to ignore their success is foolhardy. It's what makes people like Nokia lose their position in the economy.