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Technology Stocks : All About Sun Microsystems
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To: uu who wrote (5822)11/26/1997 3:19:00 PM
From: Holger Johannsen  Read Replies (1) of 64865
 
Addi,

I hope you are the right person for my question.
I saw the interview with Michael Dell on CNBC yesterday. He expressed the same feeling as you already did. He thinks that even if Asia has problems the only way to get back on track is to improve their information technology and thus invest heavily. (Certainly he is kind of biased but I still can follow the argument)
The other remark he made was even more interesting:

Asia's financial crisis has helped, not hurt DELL COMPUTER CORP because currency devaluations there have cut prices for computer components, Dell founder and CEO Michael Dell said late Monday. Dell said the Asia-Pacific region accounts for only 6% of the firm's revenues, but that 70% of the raw materials used by Dell are bought there. "(The crisis) probably has a minor effect in either direction. If I had to peg it one way or the other, I'd say it's slightly positive because of the declining material costs," Dell said. Technology stocks have been hit recently by fears Asia's economic woes would hurt PC demand.

Now I do know the percentage of sales of Sun in Asia. What I don't know is where does Sun get the components for its machines from? Do they also buy a fair amount in Asia? I feel this is quite an important question because it will determine whether or not declining sales in Asia will hurt the bottom line.

Holger
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