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To: WhatsUpWithThat who wrote (4034)10/2/2002 9:30:40 AM
From: ajtj99  Respond to of 10157
 
The claim that the product is manufactured at 1/10 the cost of CSCO's is a crock. CSCO's profit margin is something like 56%, and their overhead is massive. That's the difference, not the manufacturing costs.

CSCO's stuff is manufactured in places where the costs may be 10-15% higher than in China, and the production is currently being moved to China in some instances, if not already made there.

I have personally seen several high-tech industrial parks in China where Singapore, Taiwanese, or Japanese manufacturers have production. The Singapore one is huge.