Sun shares drop more than 15% on market share concerns

Reuters | at | by Mike

Sun Microsystems shares dropped nearly 16 percent on Tuesday, after the company issued a financial warning that sparked concern that the struggling computer maker has lost more market share. Sun said on Monday after the market closed that it would report a wider-than-expected loss for the fiscal first quarter ending this month.

Sun did not provide a reason for the earnings shortfall, citing only "intense market and competitive dynamics," but analysts said the company has suffered from a price war and has likely built on a string of market share losses.