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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 74.40-1.4%Jan 14 3:59 PM EST
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To: JP who wrote (23473)3/6/1999 4:25:00 PM
From: jach  Read Replies (1) of 77400
 
A lot to do with csco as it's one of csco's mkt segment (CAT5k/6k category). See the extract below. Fierce price competition will hurt margins and drive prices down.

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In the high-speed networking market, Layer 3 switches are rapidly moving
toward commodity status. Fierce competition is driving down prices and
vendors are blurring the lines with nearly identical feature sets. This is
especially true for fixed-configuration Layer 3 devices, which have robust
feature sets but limited expandability. Today's Layer 3 100-Mbps switch
ports cost less than Layer 2 10-Mbps switch ports did just two years ago.
Low-cost ASICs have led to rich feature sets and dazzling performance at
very affordable prices.

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