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Technology Stocks : All About Sun Microsystems
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To: rudedog who wrote (35531)9/19/2000 8:51:35 PM
From: alydar   of 64865
 
Rudedog,

Some people cannot afford the big iron but want a product from a company that produces the best, most reliable and open environment. I believe that many of the low end users will graduate to the Solaris architecture overtime with this strategy.

Mercedes does this with cars. You got the 600 series but you can get a 200 for what it cost to purchase the high end Japanese cars. Is the 200 series as good as the 600 or even the Japanese cars of equivalent pricing; I could not tell you. One thing I can tell you is that Merecedes sells alot of their lower end series, in volume, at a profit. This is called contribution. The margins might be lower but the volume is usually larger. It just means that SUNW is going to make more money. I can really care less about margins, to me, what really matters is that EPS is increasing at good clip.

I stated in a previous post that SUNW is a great engineering/manufacturing company. I would like to add to the list that they are pretty good at marketing too.

JMO, Bob.
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