In a letter to developers
, Apple's David Krathwohl (Vice President, Worldwide Developer Relations) explains the rationale for Apple's take-over of Power Computing. It amounts to about the same thing Apple previously stated in their press conference
: "Apple is willing to expand our license agreements, but only in exchange for raising the fees to a level that would help offset the expenses Apple incurs in engineering and marketing the
OS platform. Under the current licensing model, Apple is essentially giving a several hundred dollar subsidy with each licensed copy of the Mac OS. If this practice continued, Apple would never return to profitability -- which could eventually lead to a failure of the whole Mac ecosystem."