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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (14556)	4/17/2001 8:10:37 AM
From: ajtj99	Respond to of 30051

Zeev, I doubt if CSCO is liable for the inventory, but there may have been some cancellation fees involved if they did not take what they were projected to use. It all depends on how those contracts were written. Dealing with these situations is not easy for CSCO, IMO. They need these suppliers, and having several to negotiate with gives them leverage in purchasing. They can't stick them with the inventory, so there has to be a way to work through it without ruining all the companies involved. My guess is that they haven't figured out how to do that quite yet.