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Technology Stocks : Apple Inc.

AAPL 274.11

-1.5%

Dec 15 3:59 PM EST

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To: Bob Jagow who wrote (965)	1/23/1997 9:13:00 AM
From: Phillip C. Lee	of 213176

Bob, I have no ideas regarding how IBM is thinking about OS/2's future since its market share has been shrinking to about 3.3%. Meanwhile, Sun recently put Sparc 10000 supercomputer into the market, which will impact IBM's mainframe business. Although, Sun claimed this server will be used mainly on networking. Based on IBM's quarter report yesterday, its mainframe and as/400 business is flat, but pc sales are gradually increased (wintel+os/2). I wish at this critical moment for OS/2, IBM might need to consider a strategic approach to re-vitalize its PowerPC chip as well as energize os/2 sale volumes - to work together with Apple closely. If powerPC can re-gain market share, IBM would be one of the biggest winners. Don't forget Intel is 100+ billions company just selling chips.

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