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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 72.07

+1.4%

10:36 AM EST

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To: Stock Farmer who wrote (56996)	2/2/2002 12:53:34 AM
From: RetiredNow	Read Replies (4) of 77397

Oh please, now your naivete is showing, John. Technology companies live or die by how well they outplay the used markets. Do they get commoditized and marginalized or do they out-innovate the used market, obsolete it, and keep their margins high? I should probably get you a reading list. Try these for starters: * Inside the Tornado * Inside Intel * Strategic Management of Technology and Innovation It's called eating your young. You keep buying your used routers and 100Mhz PCs. Whatever works for your business. However, don't make the mistake of thinking that a used equipment market is such a big threat to the Intels and Ciscos of the world that they are in imminent danger of having their margins squeeze irretrievably. It's just another day in the life of a technology company.

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