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

To: cheryl williamson who wrote (9591)	5/5/1998 4:00:00 PM
From: cfimx	Read Replies (2) \| Respond to of 64865

YOU DON"T CUT PRICES UNLESS YOU HAVE TO. DUHHHH.

To: cheryl williamson who wrote (9591)	5/5/1998 5:25:00 PM
From: Michael Watkins	Read Replies (1) \| Respond to of 64865

Cheryl, this is a day of agreement for me. Yes, SUNW can lower its manufacturing costs. Although its pretty clear that Intel will reign when it comes to commodity production efficiency. I subscribe to the theory "commodity economics always wins". We'll have to see if SUNW can keep it up with the rest of the industry. I expect that SUNW only makes grossly high margins on the really big boxes (based on my experience at Data General). They will have to move a lot more product, increasingly, or continually reduce fulfillment costs. Its an interesting challenge!

To: cheryl williamson who wrote (9591)	5/5/1998 5:43:00 PM
From: Eugene Goodman	Respond to of 64865

Cheryl The proof of the pudding would be in the total manufacturing cost and margin for a high end PC by CPQ vs a low end Sparc plus the software. Assuming that the SUN technology is better than the CPQ\MSFT, their total selling price can be higher than CPQ's.If they were to hold their prices to below CPQ's they would improve their market share because their technology is better. The question is therefore, have they been loosing, maintaining or gaining market share with their present pricing structure? Is the price reduction a reaction to competition or a proactive move? The most critical question is what is their low end chip improvement cycle. How does it compare with INTC's? Gene