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

To: RetiredNow who wrote (66642)	11/30/2004 2:00:34 PM
From: Paul V.	Read Replies (1) \| Respond to of 77397

indmeid, QCOM - China is competing very fiercely in this arena. I remember reading that China already had a couple of their own standards that compete with QCOM CDMA. Eventually, QCOM will disappear and be replaced by newer standards. QCOM may never make much headway into the Chinese market. You must own NOK, :) Value Line has a price range for Qcom from $45-75. China is working on TSCDMA I believe but it is not operational at this time. The China govn. according to what I have read is hold up the CDMA and other outside competition until their own technology is up and running, estimated within one year. Won't the WTO come down on them for unfair trade practices? The fight, IMO, is between TI and Qcom with its cellular and Globalstar (satellite) transmission. The problem with China is their ability to copy the US products at the current time. Paul

To: RetiredNow who wrote (66642)	12/1/2004 3:44:49 AM
From: Elroy	Read Replies (4) \| Respond to of 77397

Cisco's gear, in many cases, can be turned into commodities. If this is true, then why didn't CSCO's gear get "turned into a commodity" three years ago? CSCO has had competition throughout its entire existence, and its gear has never been turned into a commodity. You forget that Juniper is having quite a bit of success against Cisco. My understanding is that JNPR has gotten to about 33% of the super high end router market (with CSCO holding the 66% balance), and has stayed there for the past few years. You see that market share changing? If there's one thing we've learned, it's that China goes after industries with fat margins. Every competitor goes after industries with fat margins, and the Chinese go after industries where they can exploit their low labor cost, not where the incumbent has fat margins. You are giving China (who's main advantage is low labor cost) way more credit for business skills than the country deserves. Again - name me ONE world class Chinese company (that your mother has heard of). They don't exist. ALL are supported by the state, and will get thrashed if they attempt to enter world markets. Their only sustainable competitive advantage is the current low cost of Chinese labor.