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Technology Stocks : Silicon Graphics, Inc. (SGI) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Davison who wrote (3551)	11/15/1997 2:18:00 AM
From: JC	Read Replies (1) \| Respond to of 14451

1. The margins at the high-end of the NT hardware market aren't that thin. Mid 20's is probably a fair guess. Most PC makers salivate for margins like that, so to a certain degree SGI is insulated from the fiercist competitive pressures. 2. Building NT boxes is easy. Nothing like the complex boxes they are used to building. It is always easier to build something simpler than to build something more complex. 3. I think SGI's literature and promotional materials are great. Additionally, they have ads all over the web. The Ping golf clubs ad that I see all over the place really sucks though. More than anything, I think their brand-name is going to help carry them in the high-end NT market. SGI has gotten a lot of publicity for the amazing things done on it's high-end hardware (look at how BMW and Mercedes leverage their brand on the low-end). 4. See point 2.