This makes the second time I've seen thus rumor. Hard to believe...
I now have heard from two executice [sic] search companies that Rockwell is setting up a retail division. I cannot confirm the product category Rockwell is setting up this division for, but rumors (strong) are that it is modems and related communication products. Rockwell does have a better, more recognized name than Boca Reseach, and this would make sense. Rockwell's resources are obviously much larger than BOCI's.
techstocks.com
I just can't see Rockwell gettting into the retail side, as they have no brand recognition or retail channels. Zoom, Boca, Diamond. GV and all of the other OEMs that use Rockwell chipsets will be effectively put out of business. 3Com would absolutely own the distribution chain, and Rockwell will find themselves competing with Lucent and Motorola as well, although Motorola will probably exit the business at some point.
If there is any truth to the rumor, the only way I can see it happening would be for Rockwell to buy a whole litter of OEMs in order to maintain the brands and channels - your basic rollup or distribution chain consolidation. Of course, the guys that get left out in the cold might not be too happy about such a move. However, it would help Rockwell come closer to achieving a major advantage of the TI/3Com partnership, which is control over both ends of the connection.
It doesn't do anything for Rockwell's technology disadvantage. The fact is that TI is the leader in creating and producing leading-edge DSP chipsets and USR is the best at writing DSP algorithms and control code. Rockwell's claim to fame is building modems with ASICs (Application Specific Integrated Circuits), which is a cheaper but far less flexible solution. Of course, they are coming around to the other way of doing it, but technology changes so fast, one has to wonder how successful they will be as a follower versus a leader. |
