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

To: cheryl williamson who wrote (43569)	5/31/2001 12:10:44 AM
From: THE WATSONYOUTH	Read Replies (1) \| Respond to of 64865

Too low for IBM to continue to sell them at that price and make their expenses. They are playing the loss-leader game. There's nothing wrong with doing that, but sooner or later they are going to have to bring their prices back up to market. I don't think you get it. The margins on these high end UNIX boxes has traditionally been huge. That tradition will over time die. You are dreaming if you think IBM is selling these systems at a loss. And, in a price battle, Sun will lose to IBM. I think that battle will come big time after Powerr 4 launches. With Power 4, IBM's price/performance advantage will be compelling. THE WATSONYOUTH

To: cheryl williamson who wrote (43569)	5/31/2001 7:06:16 AM
From: Bill Fischofer	Read Replies (3) \| Respond to of 64865

Re: Coke and Pepsi and competition Last I checked, the soft drink business didn't have Moore's law driving it. And even though I do my part there's not much either company could do to increase my weekly consumption of their products. Trying to compare the server and soft drink markets just doesn't work. Once Moore's law grabs hold of a market it never lets go and margins are squeezed and squeezed until only the leanest and most efficient competitors are left standing. Pricing relief will never come and those whose business models need such relief will find no place to hide. In many ways SUNW is simply reaping what they have sown. For years they prided themselves on being odd-man-out, going their own way, and badmouthing everyone else in the industry because they caught the first wave of the Internet buildout. The industry may have been slow to respond but they have and SUNW can expect little sympathy from the likes of IBM, HWP, MSFT, INTC, CPQ, DELL, and EMC as the roles reverse in the coming second Internet wave. A few years from now will SUNW be seen to have been another SGI? They too were once at the top of the heap preaching the "we're different, we're better" line. Their peak came with the release of Jurassic Park in 1995 and the association of SGI with dinosaurs was in retrospect sadly ironic. In SUNW's case "We're the dot in dotcom" may well prove similarly ironic in summing up the rise and fall of a great late 20th-century success story.