In 1987, Bill Gates saw the Macintosh II as a more capable business computer than earlier Macs, especially for desktop publishing, but he was not convinced Apple would win over corporate buyers. He praised its larger display, faster 68020 processor and expansion options, while pointing to price pressure and the breadth of the IBM-compatible market as obstacles. These were Gates’s period views, not a verdict on today’s computers or a record of what later happened.
What was Gates responding to?
InfoWorld’s retrospective says its March 2, 1987 issue asked industry figures to assess the newly announced Macintosh II and Macintosh SE and their likely effect on the corporate market. The publication reproduced comments from Microsoft chairman and founder Bill Gates in a 2014 retrospective; the source is not a separately reviewed facsimile of the 1987 issue. InfoWorld’s retrospective is the basis for the remarks described here.
Why did Gates praise the Macintosh II?
A larger display for demanding work
Gates argued that the Macintosh II’s larger display made it easier for people to use a Mac for more of their work. He singled out desktop publishing: the small display on earlier Macs, in his view, could constrain that work. He described running Mac Word III with a full-page display as a strong experience.
More speed and a higher-end option
Gates also highlighted the Macintosh II’s Motorola 68020 processor and characterized its performance improvement as substantial. His original phrasing was: “By having a very high-end offering with the 68020 performance and a larger display, I think it makes it easier to people who’d like to have the Macintosh serve all their needs.” That is a 1987 assessment of the new model, not a modern performance comparison.
What did his workplace experience reveal about networking?
Gates said Microsoft’s publication department used Macs to produce manuals. He described AppleTalk as pleasant and relatively inexpensive because it was built in, but said its low speed and limited bandwidth were inadequate for documents containing scanned images. In his account, the department needed Ethernet to connect with other systems.
He welcomed the Macintosh II’s expansion options, including the ability to add Ethernet through the bus or through third-party devices connected by SCSI. This is a report about one department’s requirements and period hardware; it does not establish compatibility with modern networks or equipment.
Why was Gates skeptical about Apple’s corporate prospects?
Gates separated Apple’s potential share of the overall market from its prospects with corporate buyers. He expected Apple’s relative share of the market as a whole to rise after the announcements, but doubted that corporate sales would become a strong point for the company.
- Price sensitivity: He saw corporate purchasing as cost-conscious.
- Many competing suppliers: He pointed to the number of DOS machine makers and products from IBM, Compaq and Tandy.
- A broad expansion ecosystem: IBM-compatible systems had plug-in cards that could extend their capabilities.
He framed the competition as “move and countermove,” with both architectures improving. Those were forecasts and competitive judgments made in 1987, not conclusions about how the market subsequently developed.
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What did Gates mean by the 11-to-1 sales ratio?
Gates said, “The ratio of PC to Mac sales, even in the United States, is like 11 to 1.” This is his figure from the 1987 remarks as reproduced by InfoWorld; the retrospective does not independently substantiate it as a measured market statistic. It should be read as an attributed period claim, not a verified sales measurement.
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