Sun Microsystems juggles new strategies and old rivals; workstation leader prepares to fend off incursions by PCs into its turf

Article Abstract:

Sun Microsystems Inc faces a host of challenges, including stiff competition from HP, IBM and DEC that has pushed Sun's share of the $10 billion workstation market down to 38 percent; costly delays in workstations and software; and threats to the workstation market from microcomputers. Sun's stock has fallen from $41 in Jan 1993 to $26.675 on May 10. Some analysts say that Sun has lost its technological edge to IBM, DEC and HP. The company also faces competition from microcomputers based on Intel Corp's new Pentium microprocessor. Having bet its future on Solaris, its Unix-like operating system, Sun must now worry about Microsoft's forthcoming Windows NT operating system. CEO Scott McNealy has split Sun into distinct software and hardware units and is porting Solaris to Intel 486 processors. Sun is also beginning to seek alliances with other companies.

Computer terminals, Management, Company Profile, Strategic Planning

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Toshiba unit cuts prices on notebook, laptop computers

Article Abstract:

Toshiba America Information Systems Inc, which is the American unit of Japan's Toshiba Corp, announces price cuts on laptop and notebook microcomputers. Price cuts range from 19 percent to 33 percent: a model T1000 notebook computer, formerly priced at $999, now costs $799; and a T5200C laptop, formerly $9,499, now costs $7,599. According to Bruce Lupatkin, an analyst with Hambrecht & Quist, Toshiba's move is not unexpected and follows a recent round of discounting that was led by Compaq Computer Corp. Compaq cut prices across its product lines in Apr 1991, focusing especially on laptop machines. Lupatkin notes that because Toshiba is a performance and quality leader, rather than a low-cost supplier, its lowered prices will translate into pressure on other companies to likewise reduce their prices.

Hand-held computers, Handheld computers, Compaq Computer Corp., CPQ, Prices and rates, Laptop computers, Price cutting, Toshiba America Information Systems Inc.

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IBM sets patent pact with Sun Microsystems

Article Abstract:

Sun Microsystems Inc agrees to a cross-licensing contract with IBM. This agreement is consequent to a letter to Sun from IBM, which suggested that Sun was infringing on IBM patents. Industry observers believe that patents at issue may involve IBM's reduced-instruction-set-computing (RISC) technology, which dates back to the 1970s. Sun has agreed to make royalty payments to IBM, but specific terms are not revealed. IBM has 10,000 US utility patents, compared to just 25 for Sun.

International Business Machines Corp., IBM, SUNW, Licensing agreements, Licensing, RISC, RISC processors, Reduced-instruction-set computers

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