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Technology Stocks : Corvis Corporation (CORV) -- Ignore unavailable to you. Want to Upgrade?

To: Secret_Agent_Man who wrote (623)	4/15/2001 5:51:10 PM
From: FJB	Respond to of 2772

The article is mostly about chips: ------------------------------------------ But now that the boom's gone bust, FD comments, and "these guys need to start showing a profit and must justify the return on investment for new hardware purchases, they're coming down hard" on the communication original-equipment makers. How hard? Well, "Sycamore, Cisco, Nortel, Lucent, Tellium, Cabletron and others" have gotten the word from their broadband-carrier customers that prices have to be shaved some 40%, or they needn't bother wasting their breath asking for new orders. So, what do Sycamore, Cisco, Nortel, Lucent et al. do in response? Simple: They tug their corporate forelocks and then turn around and put the squeeze on their suppliers, most conspicuously including the chipmakers. As Fechtor Detwiler relates, "Cabletron cordially invited its top 25 suppliers in this week in order to demand 40% price concessions." The problem, alas, is that most of the suppliers "don't have a spare 40% to give up and remain profitable, not to mention achieve double-digit growth rates." interactive.wsj.com