SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Bernard Levy who wrote (5226)9/14/1999 1:53:00 PM
From: Charles R  Read Replies (1) of 12823
 
Bernard,

<http://www.smartmoney.com/smt/columns/tech/index.cfm?story=19990913

We are probably seeing the opening salvo in the
commoditization of switches, routers, etc... So,
what matters is not who is on first and who is on second,
between INTC, BRCM, IBM, ... but the fact that the
days of fat margins on high end networking equipment
may be coming to a close, as we move towards standard
architectures based on mass-produced highly
integrated processors. >

Thanks for posting the article. I think the article is a little too simplistic especially in the sense that Intel is an outsider to this market and trivializing the issue.

Regardless, the conclusion you have come to w.r.t. margins is something that is inescapable. Current levels of margins are not sustainable inspite of the decent barriers to entry (complexity, software content)

IMHO, the margin shrinking process is going to be gradual and the incumbants will have their usual advantages - the player to beat are going to be BRCM on the datacom side and PMCS on the Telecom side. These guys currently dominate the design wins scene and have a good idea where to go next. And, if they can't make the roadmap happen inside, they will go out and buy.

Chuck
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News