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

To: Elroy who wrote (50578)	7/23/2002 3:10:31 AM
From: technologiste	Read Replies (1) \| Respond to of 64865

AAPL's gross margins, if I recall, are approximately 27% or so. In fact, last quarter gross profit was 391 out of 1429 million, which looks to be about 27%. That's a lot below 40%. Try again. Yes, AAPL's gross margins at 27% are significantly below Sun's at 40%. I assumed you meant 40% gross margins or lower. So that's why I picked Apple. You seem to be arguing that Apple's lower gross margins somehow makes Apple a less attractive investment proposition than Sun. Unless you believe that Sun can grow revenue at will without affecting its gross margins – or that Sun enjoys some kind of unassailable market position that lets it set prices without regard to competing products – the 40% margins, rather than being enviable, seem simply unsustainable. And these days, selling computer hardware to run UNIX, or a workalike clone, just doesn't seem that special. Come to think of it, that is now the business that Apple is in.