CSCO this qtr probably will be ok. Going forward, it will be very difficult to
maintain their net margin. There are so much competitions from all sectors (SP,
Enterprise, high-end routers) from large telecom (LU, NT, Erisson (bought ACC),
Alcatel) to startups (Extreme, Foundry, Packet Engine, Avici, NetCore, Juniper to name
a few). We all know what happened when there is too much competition, yes, price
erosion, look at disk drive and NVRAM business.
Adding to this is slow down in Asia and now in Latin America.
============== in reply to this post
<Why else would their exec let it slip down
Argentina that expectations are for 25%+ growth? Or has this quote been discredited
now?
It seems entirely possible to me that it was a trial balloon, or pre-emptive leak, or
whatever, to lower expectations gently.> |
