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Technology Stocks : All About Sun Microsystems
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To: xiangheng xu who wrote (6413)12/26/1997 8:26:00 PM
From: E_K_S  Read Replies (2) of 64865
 
If Sun can establish their low end Solaris x-86 or Merced line as the standard "workstation", I believe they will compete quite well with both Dell's and Compaq's equivalent systems. Could SUNW then demand a 30 PE like Dell or COMPQ?

By the way, where does SUNW plan to manufacture these boxes?

I noticed that they have a facility in Ireland but from my research the best I can tell is this is a software development facility.

Will SUNW outsource this work?

My suggestion is that they use some of that spare cash and buy a "JIT" (Just In Time) manufacturing facility in Korea, Malaysia or Singapore for $0.50 on the dollar. Use those strong U.S. dollars to expand their box making facility so SUN becomes one of the most efficient manufactures and takes both Dell and Compaq market share.

If so...SUNW could expand it's PE to the 25-30 range. The JAVA stuff will be gravy.

EKS

Here is the Reuters Story from Zanders:

"Sun Microsystems Inc. (SUNW)

A senior executive of SUN MICROSYSTEMS INC. said the company is confident it can compete with its own products against MICROSOFT's Windows NT system software and INTEL's upcoming Merced microprocessor. "We feel extremely comfortable with out road map," Ed Zander,president of the company's Sun Microsystems Computer Co computer systems division, said. Zander forecast Sun would end calendar 1997 as the industry's top-selling server business, although he declined to provide details and he said new workstation products to be unveiled on January 13 will take on the fast-growing market for Intel-based Windows NT workstations directly. (Reuters 03:37 PM ET 12/26/97)"
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