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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (9120)	3/23/2003 2:36:29 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 95616

Well I have to plead a little ignorance on the workings of networking equipment, but my belief is that Cisco is essentially a monopoly at this point with a software-centric product. The PC (boxmakers) were never this, components come from asia and are assembled here only. There is no consolidation in asian component houses, why I am not sure... but in the US technology business history consolidation has always produced pricing power (PCs in 80s for example)... back to Cisco, my belief is they are more of a monopoly in the msft or intel sense- they have some emerging areas like the new Linksys line which are lower margins but of course they don't own those spaces. The next level are the chips designed for Cisco products. The companies involved are BRCM etc. I suspect these guys start to get higher margins as many of them are consolidating away too. GNSS and PXLW being recent examples of consolidation in that business. Most of the networking consolidation happened last year, so chips are behind a little.