Bambs,
I posted something along these lines here before and today again on the LU thread.
There are two things changing in the tech sector. Some companies are managing the transition, some are not, some don't have to.
1 - PC's are yesterday's news. DELL, INTC, AAPL, and MOT to some degree are getting popped. There is a transition away from wired desktop computing to wireless and mission specific network appliances. MSFT isn't managing this well either but is attempting to penetrate the server market. I'm not sure they'll succeed. PALM and HAND have been doing well.
2 - There is a transition from circuit switching to routing/optical switching. LU blew this one big time. NT is managing the transition so far. CSCO, JNPR, SCRM, FDRY, etc haven't had to deal with the transition.
There is far less spending on old world circuit switching and a net gain in spending on newer optical and core routing products. We will see this as JNPR, CSCO, NT, ALA, GLW, JDSU, and others report. BTW: YHOO looked fine to me. They are getting hammered due to worries about exposure to .com advertising dollars. That is a narrow issue. |
