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So, I downloaded the latest installer image <m_fcompxe_2016.1.043.dmg>. Installed the latest Xcode (7.1.1) and also the command line developer tools. Then opened the Intel Fortran installer image and launched the installer application <m_fcompxe_2016.1.043.app>. I was logged in as Administrator, and am running OS X El Capitan 10.11.1. I have a valid product serial number for Intel® Parallel Studio XE Composer Edition for Fortran OS X*. The installer application provided a screen to select between two options: 1. Install as Administrator. 2. Install as root. [Using a local license file was NOT one of the options.] Actually I tried both options, with the same net result either way: I get a screen that says "Authorization Failure" supplemented by "Authorization failure. Check password and try again." This screen provides only a single option "Next >", which then leads to a screen that says "Enter password", amplified by "Need to enter password to proceed" and "Please enter Administrator [or root] password:". Then I'm kicked back to the previous screen. I am very confident that I entered my Administrator password carefully and correctly. One of the reasons that I favor commercial software products over open source products is that I expect commercial products to provide a better total experience, to give me better outcomes, and most importantly, to save my time and effort. This hasn't happened with 2016.1.043...
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I am sorry to hear about the bad installation experience and the associated inconvenience. If the installation logs are still available on your system and you can share those with us then I can have them analyzed by our Installation Developers to help understand the failure and the appropriate course of action. You can attach the logs to a private reply to me using the Send Author A Message link.
Please look in either /tmp, or the setting for the environment variable TMPDIR, for installation logs that contain the strings "pset" and "issa".
For any you find corresponding to the date on which you tried the PSXE 2016 Update 1 installation, please gather those up in a gzipped tar file and attach them to a private reply to me.
Thank you, and I again apologize for the inconvenience related to this issue.
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Thank you. I did the steps recommended by panagiotis s, at the following link.
https://software.intel.com/en-us/articles/os-x-1011-not-supported-by-intel-paralle l-studio-xe-2015
I logged in as Administrator before doing all this. The process and installation seems to have worked. For example, I successfully wrote a very quick test program, compiled, and executed it from the terminal command line.
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I'm glad to hear panagiotis s steps helped. I surprised that was still necessary. As indicated in the article you cited, https://software.intel.com/en-us/articles/os-x-1011-not-supported-by-intel-parallel-studio-xe-2015, the PSXE 2016 Update 1 that you noted using should support your OS X* 10.11 without further requirements/actions.
I'm glad you have been successful. I hope you have better experiences with our product in the future.

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