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Technology Stocks : All About Sun Microsystems

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To: cheryl williamson who wrote (18199)	7/26/1999 6:22:00 PM
From: Tony Viola	Read Replies (1) of 64865

Cheryl, INTC's gross margins for their low-cost processors are about 1/30 that of their Pentiums. Excuse me for butting in, but Intel doesn't disclose gross margins by product type. Also, to make it difficult for sayers to conclude the kinds of things you are concluding, they don't disclose what percentage each product type makes up of their total sales. As the market moves to lower-cost PC's, that means an increasing percentage of PC's sold will use the lower-margin processors, thus lowering PROFITS for PC makers That's why CPQ is selling for about 1/2 the price it was last year, and why DELL stock hasn't gone anywhere and is still stuck in the low 40's. What about Gateway and HP? techstocks.com About CPQ, it's problems beyond PCs are too numerous to mention, but DEC and Tandem are a good start. Dell's P/E was ridiculous, probably still is. The PC market is definitely not an easy place to make money, I agree. I just couldn't let that Intel "factoid" go unchallenged. Tony

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