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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Stormweaver who wrote (18193)	7/26/1999 11:52:00 AM
From: David Kelly	Read Replies (1) \| Respond to of 64865

Has it ever dawned on everyone that for every x PCs sold one Sun Server is required to manage the on-line usage. In fact I wouldn't be surprised if MS owns SunMicro stock. They need Sun to survive it's a symbiotic relationship like wolves and buffalo. In regards to the increase in numbers of NT workstation: I have never seen anyone mention the aggressive NT for free academic program that MS has been running for several years. Purchase any academic development tool and NT workstation comes on a CD in the box. How's that for increasing numbers.

To: Stormweaver who wrote (18193)	7/26/1999 12:53:00 PM
From: Charles Tutt	Read Replies (2) \| Respond to of 64865

Did you read the last paragraph in that article? I wouldn't focus too much on unit sales. JMHO.

To: Stormweaver who wrote (18193)	7/26/1999 6:00:00 PM
From: cheryl williamson	Read Replies (4) \| Respond to of 64865

James, Sigh... Ok, I'll try once more..... INTC's gross margins for their low-cost processors are about 1/30 that of their Pentiums. That means they have to sell 30 celerons (I believe that's the name) for each Pentium to attain equity in gross margins. As the market moves to lower-cost PC's, that means an increasing percentage of PC's sold will use the lower-margin processors, thus lowering PROFITS for PC makers. They can still make money, at least for now, but the days of booming profits for PC makers are over. That's why CPQ is selling for about 1/2 the price it was last year, and why DELL stock hasn't gone anywhere and is still stuck in the low 40's. Even the "great behemoth" from Redmond is having trouble breaking 100, and hasn't done so well since the internet boom started last year. So, the conclusion that the market has made is that PC makers won't sell enough units to make up for their collapsing gross margins. 25% year-on-year growth isn't going to do it if prices keep getting cut in half. Now do you get it??