Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Amy J who wrote (65976)	8/11/2004 10:34:13 AM
From: GraceZ	Read Replies (1) \| Respond to of 77400

Could it be that your client can't get their attention because CSCO has a non-compete agreement with a partner that serves that particular sector? My client's clients are always trying to jump the connection and deal direct with me with the false hope it would be cheaper. I don't do it (except to take orders from them) because I protect my clients' businesses, some of whom I've dealt with for 25 years. I don't care how big the deal is because my regular client is a constant source of income I can't afford to undercut. OTOH years ago when CSCO announced that they were splitting into 12-13 different divisions (can anyone here actually remember them all?) based on market my immediate thought was that this would result in clients being confused as to which division they should go to and confusion on the part of CSCO employees as to who deals with them. As a customer of HPW I dealt with this nightmare simply because I had one product which spanned four divisions of HPW. The conversations went like this: I have a problem with my plotter...you've called the consumer division you need the small business division...you have the small business division you need the plotter division...you have a Postscript problem, you need the Postscript division, which happens to be in the consumer group...the Postscript issue involves your network interface so you need to call the network people. After five different calls you finally lose it completely they send you up the line to someone whose job it is to head off legal problems. Finally I got a third party to resolve the problem. Buying from the partner beat the hell out of dealing with them directly.

To: Amy J who wrote (65976)	8/11/2004 10:38:00 AM
From: Elroy	Respond to of 77400

Amy, Not sure what subject you are discussing. My point was that Cisco's inventory increase is unlikely to create a major write down in out quarters. That's because product cycles in networking are much slower than in industries which are experiencing more rapid technological change. High inventories at Cisco is much less of an issue than high inventories at, say, Nokia, where Nokia might get stuck with a bunch of old phones nobody wants because Samsung is selling a newer, better model at the same price. There is no Samsung equivalent for Cisco, so the high inventories are a bummer, but they are unlikely to become obsolete, and Cisco won't have to significantly cut prices to move older product. That's my point. Elroy