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

To: E_K_S who wrote (18208)	7/26/1999 9:52:00 PM
From: JC Jaros	Read Replies (1) \| Respond to of 64865

HI JC - Any idea if the margins will be the same? Or rather is the benefit to SUNW an increase in overall unit production. Will Sunw still be doing the assembly and testing or might they contract this out to somebody like Solectron? Boy, I have no idea, Eric. I know that it'd be a HELL of a lot easier for Sun to adopt the Dell model than for anyone else to adopt the Sun model. Sun though, has made some effort to propagate clones (selling Ultra IIi motherboards), although that doesn't appear to have become anything notable. The third direction would involve open (community license) Sparc architecture, and others tweaking Sparc for their own boxes. That would bode well for Solaris and nix mindshare (Linux/BSD) and at the same time provide revenue stream on the Sparc license side. Something needs to give on the backlog issue. The Ultra production capacity is too many quarters lagging demand. I think they're at a point where the "Sun" box brand is such where they could afford to farm out the low end and midrange without having to worry too much about damaging the brand. It *seems though that Sun would rather go the 'arranged electron' route (software and other licensing) than dramatically increasing production capacity via an acquisition or something similar. -JCJ