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

To: E_K_S who wrote (48150)	4/9/2002 8:37:42 PM
From: Charles Tutt	Respond to of 64865

Somebody asked about the price reductions and their effect on margins at the E12K introduction. As I recall, the response was that it represented passing on price reductions in components and the normal "learning curve" price progression. I think they said the discussion would be archived on Sun's Web site if you want to listen. JMHO. Charles Tutt (SM)

To: E_K_S who wrote (48150)	4/9/2002 8:45:17 PM
From: Bald Eagle	Respond to of 64865

One good thing is that SUNW's main competitors, IBM and HP are not in such great shape. So, they can't afford to drop their prices too much. The sun will rise again :-)

To: E_K_S who wrote (48150)	4/9/2002 9:43:38 PM
From: techtonicbull	Read Replies (1) \| Respond to of 64865

This product release indicates Sun Microsystem's strategy of being ready to seize the market for the mid-range as well as the upper ranger UNIX based server market. There is no doubt that the earnings, and price appreciation will be rapid once there is a more accommodating environment for capital IT purchases. Will there be a massive upgrade cycle in technology? I think there will be. It's just like cellphones. How many people own the first, or second cell phone they ever purchased? Well, they might still own it but they don't quite use it. The technology has changed and the heavy, or average users of cellphones are inclined to want the lates offerings. The same applies to computer systems. What's most compelling about the server world is TCO. TCO make the most sense for corporations to move forward and make revisions in their IT systems. Remember that SUNW has not halted or significantly reduced their R & D budget. So I would imaginr that they have the next generation of chips in various stages of development already. I suspect that they will try to convert all existing clients to the US III chip products and then integrate their software upgrades accordingly. SUNW still has a big "war chest" of money in their corporate treasury and will use it to remain a "player". I also believe that they will annouce some significant alliances in the not so distant future in opposition to Microsoft. This is going to continue to be their strategy. Finally, I believe that they will win their lawsuit agains MSFT.