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Technology Stocks : All About Sun Microsystems
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To: Rob Young who wrote (31826)5/11/2000 1:52:00 PM
From: Steve Lee  Read Replies (2) of 64865
 
Wot u say is true: "designing for "Industry Standard
Servers" is a very slippery slope (watch those margins
slide off to nothing when Dell comes in that space, etc.)"

But wot if the alternative is worse. Charles Schwab decided at an early point to cannibalise their own market by offering web services that undercut their existing services. They could see that if they did not "steal" their own customers, someone else would. Those not going with Intel architecture face a similar risk.

It is not much use having high margins if the price/performance of your product makes it so uncompetitive that nobody buys it.
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