More on Fast Ethernet adapter cards...
(From AOL) Zep Hirsch said (concerning adapter card maker Standard Microsystems):
...Says that "lower revenue in the System Products Division resulted from severely lower market prices for Fast Ethernet products, a LAN industry-wide slowdown and decreased sales of older Ethernet products." Could this be what's ailing MRVC ?
My response:
No--exactly the opposite! Lower priced Fast Ether cards *help* MRVC...but hurt 3Com and Standard Microsystems. By the way, note the company sees the same slowdown in the older "Slow" Ethernet industry I have mentioned previously.
I'll say it again: THE OLD 10MB ETHERNET MARKET IS IN A SLOWDOWN. However, the 100MB/1000MB switch market is exploding. MRVC is a major beneficiary of this trend. 3Com is not, due to its exposure to the old 10MB market, and adapter cards.
Standard Microsystems makes the adapter cards, including Fast Ether Cards...the lower prices on the adapter cards IMPROVES the story for Fast Ether switches. People upgrade PCs with the cheaper cards, and BUY MORE Fast Ether switches. This was Intel's intent in the first place...to improve sales of Fast Ether switches by lowering the price on the PC adapter cards.
See this old release:
HAUPPAUGE, N.Y., Feb 14 (Reuter) - Standard Microsystems
Corp said Friday it cut retail prices of its Fast Ethernet
network cards by more than 40 percent.
Effective immediately, the company's 10/100 Fast Ethernet
PCI Network cards start at $95 each, off from $164. In packs of
50, the cards will cost $4,050, or $81 per item.
The price reductions follow cuts in the past week for Fast
Ethernet cards made by 3Com Corp (NASDAQ:COMS) and Intel Corp
(NASDAQ:INTC). |
