Despite these software problems, Apple computer had been persuaded to try an ARM project to replace the obsolete Apple II, code named the Mobius. The result was very impressive. Not only was the ARM based computer prototype able to emulate the 6502 and 65C816 processors, it even ran Macintosh software faster than the 68000 could. Of course this had to be nipped in the bud and the project was terminated. Apple would have to find a home for the ARM that was not threatening to the existing computer groups

Mac was the sacred cow, but Apple II was the cash cow. The Apple III, still based on the 6502 processor and not enough of a stretch, was finally detached from life support and pronounced dead. Sculley plowed investments back into the Apple II product line. The Apple IIGS was nearing release, with the incrementally more powerful 65C816 processor, carefully avoiding encroachment on Mac space.

Researchers are usually undeterred by annoyances such as cash flow and product positioning. ATG had executive backing, money, talent, and ideas, and hunted for projects. Tom Pittard and Paul Gavarini of ATG spotted the ARM architecture, rightly inferring Acorn had shared 6502 experience and motives.

Investigation began. Pittard and Gavarini went to work on the Mobius project. Their two-year effort created a board using a VLSI Technology ARM2 chip plus software emulating the entire Apple desktop computer lineup: a 6502 or 65C816 running Apple II code, and a 68000 running Mac code. All emulated code ran faster on the ARM2 processor than the corresponding native versions.

Mobius boldly explored some of Apple’s technology problems, but created a potentially dangerous set of marketing nightmares. Blurring the lines between the two major Apple hardware product lines made few friends internally. Mobius terminated quietly – but Pittard kept the prototype in his office.

I was the initial member of Paul Gavarini's Apple ATG project that used the ARM processor core in a highly innovative personal computer prototype called Möbius. Later I presented the ARM performance benchmarks to the wider Apple engineering community.