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Technology Stocks : All About Sun Microsystems

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To: Eugene Goodman who wrote (9563)	5/5/1998 3:40:00 PM
From: cheryl williamson	Read Replies (3) of 64865

Gene, RTFN: news.com The article details price cuts & enhancements to SUNW's Ultra line. It specifically mentions the Ultra 5 & 10 as being highly competitive with the new Pentium II-based systems. Aren't price cuts going to hurt SUNW's margins? So we've heard over & over again. The answer is no, SUNW lowered its cost of manufacturing on the Ultra 5 & 10 to make it more competitive with high-end PC's. You'll notice that SUNW can time its price cuts with every new INTC introduction. As I stated before, hardware is practically a commodity business. There's no reason to pre- suppose that SUNW can't benefit from manufacturing efficiencies as much as anyone else. This announcement is the proof.

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