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Technology Stocks : All About Sun Microsystems

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To: cheryl williamson who wrote (8038)	3/5/1998 6:58:00 PM
From: cheryl williamson	Read Replies (2) of 64865

I've just read an article in news.com that had the following statement: High-end chips are important to Intel as low-cost processors, Brookwood explained. A low-end Pentium MMX that sells for around $80 costs $50 to build. A 300-MHz Pentium II, however, sells for more than $600 and only costs $85. In other words, INTC makes about $30/per unit on MMX's & about $515/per unit on Pentium II's. So they have to sell 17 or 18 MMX's to equal 1 Pentium II, in order to make the same profit. Without the volume, they don't make as much money. It's as simple as that. So, it's really the sub-$1000 PC that is causing INTC's current difficulties. And, we all know that the advent of the NC is creating the market for sub-$1000 PC's. SUNW will weaken the PC market while making a market for their thin client servers. Touche!! cheers, cherylw

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