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April 8, 1987

SUN PRICE CUTS MAY FORCE OTHERS TO FOLLOW SUIT

By CBR Staff Writer

Despite brave words from Apollo Computer Inc that it has nothing that competes directly with Sun Microsystems’ 3/50M – on which the Mountain View, California company slashed prices 36% on Monday (CI No 657), and that it has no present plans to cut prices, it is likely that the Sun move will force a response: immediately most exposed by the Sun move is probably DEC with the VAXstation 2000, and the company is going to have to decide whether it is going to mix it in the $5,000 market with Sun or try to remain aloof from the fray with high prices for higher performance; Sun says its plant is primed so we can pump these out like cookies.

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