Power Computing halts work on headquarters, blames Apple

Macintosh clone maker Power Computing says it has temporarily halted work on its new US$28 million headquarters, blaming Apple Computer's foot-dragging in the Mac OS licensing negotiations. Power Computing's product plans depend directly on its ability to license the Macintosh operating system from Apple and negotiations over licensing terms for the latest version of the Mac OS 8 have been stalled amid Apple's efforts to get its own house in order.

Macintosh clone maker Power Computing says it has temporarily halted work on its new US$28 million headquarters, blaming Apple Computer's foot-dragging in the Mac OS licensing negotiations.

"We have to act prudently," says Mike Rosenfelt, director of marketing at Texas-based Power Computing. "We have certain long-term growth plans which we have to evaluate as a result of the vacuum Apple has created because of its lack of commitments."

Power Computing's product plans depend directly on its ability to license the Macintosh operating system from Apple and negotiations over licensing terms for the latest version of the Mac OS 8 have been stalled amid Apple's efforts to get its own house in order.

Rosenfelt is not commenting on the status and nature of the licensing negotiations, other than to say that Power Computing remains hopeful the issue can be resolved. He says the company is watching its expenses carefully right now.

Several months ago the clone maker purchased a 270-acre site in Georgetown, Texas, slated to be converted into the company's campus. However, construction on the first phase of the site that started three weeks ago has now been halted, Rosenfelt says.

During last week's Macworld exposition in Boston, Power Computing officials and other Macintosh clone makers openly criticised Apple for ignoring the issue and for reneging on previously made licensing promises.

Apple executives could not immediately be reached for comment.

Power Computing can be reached at http://www.powerc.com/.

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