Power Computing Corporation
| private | |
| Fate | acquired by Apple Inc. |
| Founded | 1993 |
| Founder | Stephen “Steve” Kahng |
| Defunct | 1997 |
Power Computing Corporation (often referred to as Power Computing) was the first company selected by Apple Inc to create Macintosh-compatible computers ("Mac clones"). Stephen “Steve” Kahng, a computer engineer best known for his design of the Leading Edge Model D, founded the company in November 1993. Power Computing started out with financial backing from Olivetti (US$5 million) and $4 million of Mr. Kahng’s money.
The first Mac-compatible (clone) PC shipped in May 1995. Like Dell Computer, Power Computing followed a direct, build-to-order sales model. In one year, Power Computing shipped 100,000 units with revenues of $250 million in the first year. Power Computing was the first company to sell $1,000,000 of products on the internet.
Power Computing released upgraded models until 1997 with revenues reaching $400 million a year. The Mac clone business was stopped after Steve Jobs returned as interim CEO of Apple in July 1997. In September, Apple bought the core assets of Power Computing for $100 million in Apple stock and terminated the Mac cloning business.
Power Computing Corporation was founded in November 1993, backed by $5 million from Olivetti and $4 million of Mr. Kahng’s money. At the MacWorld Expo in January 1995, just days after receiving notice he had the license to clone Macintosh computers, Kahng enlisted Mac veteran Michael Shapiro to help build the company. Shapiro convinced Kahng to open shop in Austin, Texas at the recently abandoned facilities of CompuAdd Corporation. Shapiro helped to develop the original logo and brand and worked with Kahng to build the initial management team. In 1997, PCC relocated its headquarters to a location directly across I-35 from Dell's main campus, and remained there until Apple acquired PCC's assets in 1997. Mr. Kahng set out to create a simplified Mac design that made it cheaper and faster to produce the machines. He then targeted the mail-order market, where Power Computing could get a quicker return on its money than it could by selling through distributors.
At that time, Apple was leaning towards giving licenses to big time computer makers. Initially, even with Mr. Kahng’s reputation as a "master cloner", getting Apple to take him seriously was a challenge. He ended up bringing Olivetti people with him to meetings. Apple engineers gave him the help he needed to make a Mac prototype. The team reduced the size of the Apple main circuit board so that it could fit into a standard PC box. They also used off-the-shelf PC power supplies and monitors.
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