Hell froze over Wednesday. Pigs flew. And Apple Computer (APPL) for the first time unveiled software allowing Microsoft's (MSFT) Windows operating system to run on Apple's PCs.
That's a huge change for the iconoclastic PC maker, which has long shunned Windows even though it runs on more than 90% of PCs. Now Apple is moving toward the mainstream and easing its decades-long rivalry with Microsoft.
COMMENT: Does XP on Macs rock your world?
Apple has been on a three-year roll with the smash success of its iPod digital music player. But it remains a minor player in PCs, with just 4% of the U.S. market. Microsoft allies such as Dell and Hewlett-Packard dominate.
So it introduced free software that lets users of some new Apple Mac PCs run a version of Windows called XP. But it won't be easy, or cheap. Most customers will have to fork over about $200 to buy a copy of Windows. And Apple won't help with installation.
Still, says analyst Tim Bajarin at researcher Creative Strategies, the move is "very significant" for a company that has long marched to its own beat. Investors seemed to agree. Apple shares soared nearly 10%, closing at $67.21.
The new software, Boot Camp, makes Macs "even more appealing to Windows users considering making the switch," says Apple Senior Vice President Phil Schiller. But he emphasized that "Apple has no desire or plan to sell or support Windows."
Microsoft said in a statement, "Windows is a great operating system. We're pleased that Apple customers are excited about running it and that Apple is responding to meet the demand."
Apple has been telling consumers for years that anything they wanted to do on a Windows machine could be done with a Mac. It pointed to popular programs such as Microsoft's Office and Intuit's Quicken, available in both Windows and Mac formats.
But some other programs, such as some video games, are Windows-only. And many websites offer video with copy protection from Microsoft, preventing them from being viewed on Macs. They include MTV.com, ComedyCentral.com and Yahoo's music video offerings.
Aim is more customers
Apple is aiming for more customers like Jeff Prus, 35, a Windows user in New York City. Prus has long wanted a Mac. But he has stuck with Windows because his employer, American Express, uses it.
"I will definitely consider buying a Mac now that I can have the best of both worlds," says Prus. "I'm thrilled."
Some users already were making the switch Wednesday. Oliver Breidenbach, a software developer in Munich, Germany, installed Windows on an iMac. He said it took him about an hour and 20 minutes to complete the installation.
Getting Windows onto the new Macs was something he said he expected to see from a third-party developer — not Apple. "I just never thought Apple would do this," he said.
Wednesday's release doesn't end the 25-year rivalry between Apple and Microsoft.
Apple is not selling PCs with Windows already installed, as Microsoft partners Dell and Hewlett-Packard do. Instead, users must buy a Mac, then download Boot Camp from Apple's website. Then they must buy a copy of Windows XP and install it themselves. When they do so, they'll have two operating systems, Windows and Apple's Tiger.
But users can't simply switch back and forth between the two. Instead, they need to reboot the computer to use one or the other.
And while Windows programs will work on the Mac, the same can't be said for Mac programs in XP. Apple software such as photo-management program iPhoto and movie-editing tool iMovie will continue to be Apple-only.
Apple says it won't sell XP in its retail stores. And the tech support specialists in those stores called "Mac Geniuses" won't offer help.
For those reasons, "Millions of people aren't going to run out and buy Macs," says PC analyst Samir Bhavnani at researcher Current Analysis. Still, he says, "It could be an important first step toward making Apple more than just a niche player in the PC market."
Boot Camp is the latest move by Apple to become more mainstream in hopes of boosting revenue. Apple in January began selling computers with processors from chipmaker Intel. The processors, or computer "brains," are the same as those used in many Windows PCs. Apple had previously used specialty chips.
Apple is now converting its entire product line to Intel. For now, just the iMac and Mac Mini desktops and the MacBook Pro laptop are Intel-based. Apple says its remaining computer lines will switch over by the end of the year.
IPod paved the way
Apple's move to make Macs Windows compatible tracks the history of the iPod. The iPod worked only with Macs at first. But then Apple released a Windows-compatible version. Had Apple not done so, "The iPod would have been an afterthought," says equity analyst Charles Wolf at Needham and Co. The company would have sold a tenth of the iPods that it did, he says.
Apple went on to dominate digital music with such force that it now has a 70% market share of digital music devices, and iTunes is the No. 3 application — after Windows Media Player and RealPlayer — for music playback, says research firm Nielsen/NetRatings. ITunes' growth has been phenomeonal: up 349% in February from a year ago, with 18.5 million users, says Nielsen. For some of the Mac faithful, the whole move to Intel chips has been a bit of a body blow.
"It's really emotional for us," says Paul Carlin, a San Francisco software developer. "We've always felt that Macs were different, but now they're not. Some of the specialness of the Mac has disappeared."
Sam Aaron, a British doctoral candidate and blogger, says Mac fans will oppose Boot Camp. "But it's just fanatics performing their usual Windows hatred mania. In the past, they ranted about the release of iTunes for the PC, too."
Apple, founded in a Silicon Valley garage in 1976, once was a major PC maker before Microsoft changed the equation by selling its Windows software to all makers. Apple kept its software to itself.
The question of viruses
Now, virtually all businesses run Windows software. Apple is a minor player, focusing on education, home use and creative professionals such as graphic artists, photographers and architects.
Wolf says the Boot Camp move won't spur a widespread switch among corporate PC buyers. "(Tech) departments aren't going to change," he says.
But Rich Trouton, a Mac fan who blogs about Apple at the unaffiliated theappleblog.com, says they should. Apple Macs are known to be virtually virus free. If users could run Microsoft programs, he says, "but be able to skip the viruses and the spyware, that'd be a huge support burden that would be substantially lessened."
That could change with Mac users putting Windows on their computers, say security experts. Macs have been generally safe because there are so few that hackers haven't focused on them.
"When you're running Windows on a Mac, you're as vulnerable as any Windows user," says Larry Seltzer, security center editor at news site eWeek.com. "An interesting question is, would a malicious Windows program affect Mac files on the same computer? It's theoretically possible but extremely difficult to pull off and would reach a very small audience in the Mac market."
Still, Wolf predicts that by offering a way to get XP onto Macs, Apple's share of the home computer market will double, "if not triple, over time. This is an important, significant day for Apple. Apple has changed its religion."
