This paper presents a unified modeling approach of alternating current (AC) machines for low-cost high-performance drives. The Equivalent Flux concept is introduced. Using this concept , all AC machines can be seen as a non-salient synchronous machine with modified (equivalent) rotor flux. Therefore, complex salient-rotor machines models are simplified, and unified shaft-sensorless AC drives can be sought. For this purpose, a unified observer-based structure for rotor-flux position and speed estimation is proposed. The equivalent flux concept generalizes the existing concepts, such as the extended back-electromotive force, the fictitious flux and the active flux.