ComputerWare
| Company type | Private |
|---|---|
| Industry | Retail (Macintosh products) |
| Founded | 1985 |
| Founder | Karim Khashoggi, Drew Munster |
| Defunct | 2001 |
| Fate | Ceased retail operations; brand and assets sold to Elite Computers & Software |
| Headquarters | Palo Alto, California , United States |
Area served | San Francisco Bay Area |
Key people | David Lipson (owner after acquisition) |
| Products | Apple Macintosh products and related hardware |
ComputerWare: The MacSource was a network of ten retail outlets exclusively dedicated to Macintosh products, located throughout the greater San Francisco Bay Area. Established by Karim Khashoggi and Drew Munster, it grew to become the largest reseller focused solely on Macintosh in the United States. Beyond its retail presence, ComputerWare maintained a central headquarters that managed international, direct, and corporate sales, alongside hardware repair and training facilities within the Bay Area.
History
The inaugural ComputerWare location launched in 1985 on California Avenue in Palo Alto, founded by Drew Munster and Karim Khashoggi, with Derek Van Atta subsequently appointed as store manager. Initially operating under the name Lightning Development dba ComputerWare, the company was later restructured as ComputerWest dba ComputerWare following its acquisition by David Lipson from the original founders.
The corporate sales division was introduced in 1987. By 1988, a dedicated headquarters at 2800 West Bayshore Avenue in Palo Alto consolidated administrative tasks, repair services, and sales operations.
Growth intensified in 1989 with the opening of a second store in Sunnyvale near Fry's Electronics, accompanied by three additional locations: San Francisco’s financial district, Berkeley (through acquisition of MacOrchard), and Santa Cruz (via purchase of Computer Center). In 1990, a sixth outlet emerged in San Rafael after acquiring MacGarden.
In 1992, two more stores began operations: one in Dublin and another on Sunnyvale’s El Camino Real acquired from MacShop. The hardware repair center relocated in 1993 to a separate facility across U.S. Route 101 from the headquarters.
By 1994, the chain reached its maximum size with ten stores, adding locations in San Mateo and Walnut Creek; meanwhile, the Sunnyvale El Camino store moved to Santa Clara to ensure comprehensive Bay Area coverage. November 1995 saw ComputerWare unify its headquarters, warehouse, and repair operations into a larger site at 605 West California Avenue in Sunnyvale.
ComputerWare UK
Established in 1992 by Rik and Christeen Alexander, ComputerWare UK operates as a distributor based in the United Kingdom specializing in computer input devices and testing equipment. Serving manufacturers, system integrators, value-added resellers, and PC assemblers, the company concentrates exclusively on hardware products without engaging in software or service offerings. Additionally, it functions as an agent for firms operating throughout the Middle East and Africa.
Apple authorization
In November 1991, Apple granted official dealer status to all ComputerWare outlets, authorizing them to retail the complete line of Apple Macintosh products. By January 1997, ComputerWare attained Apple Specialist recognition for its dedicated support of the Macintosh platform.
The downfall
In April 2001, under the ownership of David Lipson, ComputerWare ceased its retail operations due to various challenges including waning confidence caused by Apple's own retail expansion. Efforts to sell the business were unsuccessful, resulting in asset liquidation.
The reincarnation
In June 2001, Elite Computers & Software purchased ComputerWare’s brand and assets, reopening four former locations in Capitola, Sunnyvale, Berkeley, and San Rafael. Operating under the name ComputerWare by Elite Computers & Software, this retail segment grew to five stores by late 2001 by employing experienced personnel from the original chain.
The second decline
By 2003, Elite Computers & Software had shuttered all five of its ComputerWare by Elite Computers & Software outlets, including its main store located near Apple's Cupertino headquarters. This development was largely influenced by the emergence of Apple-operated retail stores, perceived favoritism toward Apple outlets during product launches, and modifications to contracts for Apple-authorized resellers. These factors contributed to widespread dissatisfaction among Apple dealers across the country, many of whom depended exclusively on Macintosh sales as Apple Specialists.
Tensions intensified, resulting in multiple store closures and legal actions initiated by several dealers against Apple, citing unfair competitive practices and contractual disputes. This breakdown underscored the difficulties faced by resellers reliant on a sole supplier amid Apple's growing focus on direct retail operations.
The San Rafael location
The San Rafael (Marin) store was revived in 2004 under new management as C3 Computing Corp, which later rebranded as The Marin Mac Shop before ultimately closing in 2010. Throughout its existence, this site remained dedicated solely to Macintosh products, preserving the heritage of the original ComputerWare brand. The Marin Mac Shop ceased business in May 2010.
See also
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