Apple Fee Hike Plan Puts OEMs At Risk

Things are looking pretty shaky for Apple as plans to increase licensing fees threaten to kill of the firm?s OEM business

Apple is understood to be hiking its fees for licensing partners, putting its OEM business in jeopardy as the manufacturer once again becomes the victim of takeover talks.

The move comes at a time when speculation is growing about a possible takeover bid from Motorola. Analysts claim that because Motorola?s PC business was left in limbo by the decision not to support NT on Power PC, the chip company has enough money to buy Apple.

According to US reports, Apple plans to increase its licensing fees, so that systems builders would pay an extra fee to assemble a system. The firm already charges its licensees high fees, which also include a charge of $5,000 to have the system qualified by Apple. But the latest hike could have a disastrous effect and kill off its OEM partners.

Sukh Rayat, MD of distributor Flashpoint, which sells Power PC motherboards, said: ?If that happens, Apple can kiss that market goodbye.?

He added that since Apple had taken its time in licensing systems to third parties, it is unlikely that licensees and current partners will look favourably on the move. If Apple were to leave the market, it would look foolish, said Rayat.

A representative for Apple conceded that he had heard the rumour, but he refused to give any further details.

US reports also claimed that Apple CEO Gilbert Amelio was planning to axe the number of dealers able to sell its products, in a bid to raise the technical capability of its resellers.

An Apple UK representative said he was unaware of any plans in the US, insisting that the UK operation would not reduce its reseller numbers.

J Apple US has agreed to settle federal false advertising charges by offering thousands of users a rebate or a price discount on upgrade kits on three models. The FTC claimed Apple misrepresented the availability of upgrade kits in April 1994.