History and Conjecture
In spite of SOS's advantages, it wasn't backward-compatible with DOS 3.2 and DOS 3.3, which most Apple II software used at the time—though the Apple III itself was designed to be mostly backward-compatible with the Apple II Plus in hardware, users had to boot Apple DOS from a separate disk to use Apple II series software, losing the advantages of SOS. Many average computer users also weren't ready in 1980 for an operating system with the capabilities and flexible configuration options that SOS offered, especially combined with the Apple III's bad reputation due to poor engineering and its high retail price of near $4,000.
Read more about this topic: Apple SOS
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