Competition, lack of standards hurt modem sales
"There's going to be more modems shipped this year than
last year...It's just that no one's making money on them,"
says Ernie Raper, senior market analyst for VisionQuest 2000 Inc.
in Moorpark, Calif.,
No one, that is, but 3Com Corp., the California computer
networking firm which this earlier year purchased modem maker
US Robotics Inc. The US Robotics line of 56K modems continues
to sell well, even at premium prices. But US Robotics officials
admit that even they are losing business due to the standards
battle.
Abner Germanow, an analyst with International Data Corp. in
Framingham, says that US Robotics' strategy has enabled it
to win new business with Internet service providers. "They're
four times the size of their nearest competitor," says
Germanow, "and they have the marketing dollars to blow their competition out of the water."
But should consumers wait? No way, says Ernie Raper of
VisionQuest 2000. Most makers of 56K modems guarantee they
will provide either free or inexpensive upgrades whenever
the standard is finally set. Meanwhile, the modems can still
be used to connect at lower speeds. And then there are those
amazing prices.
sjmercury.com
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