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Newton Reabsorbed, Apple Moving to NCs?

According to a rumor from a generally reliable source, Apple plans to reabsorb Newton, Inc., possibly to satisfy Steve Jobs’s (and Larry Ellison’s?) desire for Apple to sell an inexpensive network computer (NC). A move to turn Apple into a network computer company somewhat corresponds with an unconfirmed rumor on MacInTouch that Jobs "essentially told [Motorola CEO Chris] Galvin that he wanted Apple to become an X86-based NC company" because the Newtons use ARM processors instead of the PowerPC chips found in current Macs. However, taking the network computer theory to its logical conclusion of eliminating the Mac OS, why would Apple have bothered to buy out Power Computing’s Mac OS license?

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