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Technology Stocks : All About Sun Microsystems

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To: Charles Tutt who wrote (44381)	8/6/2001 10:47:20 PM
From: THE WATSONYOUTH	Read Replies (2) of 64865

Where will IBM be pricing the Regatta? And what are their costs? I believe they will price Regatta very aggressively. In the past, Gerstner never wanted extra revenue at the expense of margins. But he is soon gone and I believe Palmisano is poised to change that practice. Also, with Power4, IBM should have a large performance edge over USIII. The best time to take market share is in a down cycle. Most importantly, IBM depends on hardware for less than 50% of their revenue. They are not as critically dependant on hardware sales as is Sun. In addition, all Unix vendors will have to lower prices or lose market share to Itanium. As to costs.... I don't see Sun matching costs with IBM. IBM does much more in house including chip fabrication. I look for an intense price war especially entering 2002 as the Power4 systems populate IBM's entire Unix line. The Unix systems will never again be as lucrative......especially for Sun. THE WATSONYOUTH

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