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Technology Stocks : All About Sun Microsystems
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To: Fangbing Wu who wrote (330)1/24/1997 7:45:00 AM
From: Dan Good   of 64865
 
As you said, Sun wasn't after the low end market. But there is a very good reason. The mainframe high performance has profit margins of 30% to 50%. The low end has so much competition, the profit margins have been slim. Sun is a strategicly run company from the beginning. They have been increasing bottom line (and my stock price) for as long as I have owned them.

Now, however, they must see more money to be made in the high side of the home/office computer, and are making sparc systems that can outperform the wintel platform. But what really impressed me about Sun was this: They were a company destined for the "Apple highway". A system that couldn't use the most popular platform, and wasn't getting accepted as an operating system. With foresight, they put their chips into a language that could perform on any system. So what we will have soon, is the perfomance issue only. Any software will be able to run on any system. Sun will ensure that and will get a mega profit from former wintel users that really dislike the Microsoft platform.
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