Apple Allows Windows on Its Machines

April 5, 2006

Turning a decades-long rivalry on its head, Apple Computer introduced software today that it says will easily allow users to install Microsoft's Windows XP operating system on Apple's newest computers.

The software, Boot Camp, is available as a free download on Apple's Web site and will be part of the next version of Apple's operating system, Leopard. It works on Apple's three lines of computer that run on Intel chips — the Mac mini, the iMac and the MacBook Pro.

Apple's move is a recognition of the growing interest among some users in running Windows on Macintosh computers now that they are using Intel processors, which power the majority of Windows-based personal computers. Many technology enthusiasts have already been sharing software and tricks on the Internet to allow Mac users to add Windows to their new machines, though those approaches involve a far more complicated installation than Apple's new software does.

In a statement today, Apple said it does not intend to support Windows for customers who install Boot Camp and run Windows XP on their machines. Still, the company said it is providing the software because it recognizes a sizeable demand — and opportunity.

"We think Boot Camp makes the Mac even more appealing to Windows users considering making the switch," Philip Schiller, Apple's senior vice president of worldwide product marketing, said in the statement.

Investors seemed to think the strategy would help Apple expand its share of the personal computer market beyond the 3 percent to 5 percent level where it has stood at for many years. Shares of Apple jumped $4.23, or 7 percent, to $65.40 in morning trading. Shares of Microsoft were up 6 cents, to $27.70.

After years of stagnant or declining computer sales, Apple has seen a steady and significant rise in its desktops and laptops in recent years as more consumers have purchased its iPod music player and bought songs through its online iTunes music store.

Though Apple's shift to Intel from chips made by International Business Machines and a former division of Motorola has been considered risky from a technical and business standpoint, the move could help the company capitalize further on the so-far modest gains it has made in the computer business.

Many personal computer users have been reluctant to switch to Apple, because they cannot use software that is written to run exclusively on the Windows operating system, said Charles Wolf, a veteran technology industry analyst at Needham & Company. By making it easy for users to run Windows software on its machine, Apple has taken away "one of the most significant barriers to switching," he said.

The key test will be whether computer buyers will be willing to spend more money to buy an Apple computer to run the same software they can run on a far cheaper Windows-based machine from manufacturers like Dell and Hewlett-Packard.

Mr. Wolf calculates that Apple's biggest market share gains will be among residential users, who are more likely to be swayed by Apple's design and media savvy than corporate and government customers who will likely to stick with cheaper hardware and software configurations.

The shift could mean a significant increase in sales for Apple over time, especially after Leopard becomes the standard Mac operating system late this year or early in 2007. But the company's gains do not have to mean big losses for other hardware makers, Mr. Wolf said, because they will only lose a small fraction of their market share.

"You are starting out with a market share of 2 or 3 percent and maybe going to a market share of 6 or 7," he said. "Apple is not going to take over the world."

Users who download and install Boot Camp must buy a copy of Windows XP software, which starts at $141.98 for the home edition. The Boot Camp software serves as an intermediary that creates an installation disk (users will need to provide a blank compact disk for this step) that lets the Windows software operate the Apple hardware, including its networking, audio and graphics devices and controls. Certain other features like a remote control for Apple's media software will not work with Windows software.

Once the installation is complete, users can select which operating system, Apple or Windows, they want to use each time they start the computer. Sounds sweet?!