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

To: RetiredNow who wrote (66761)	12/20/2004 9:56:58 AM
From: Elroy	Read Replies (1) \| Respond to of 77400

Fine, but your point and Amy's point (which was that Chinese companies were kicking Japanese company's butts by making products smaller and cheaper) are not the same. Read the article below and pay special attention to the things I marked in bold: I read it, and there is one sentence with any meat (which I discuss below). If these Chinese companies are diong so well (or going to do so well), why are they NEVER discussed in virtually ANY major worldwide market share analysis of any high end products? And why haven't we heard of ANY of them other than Huawei and UTStarcom? Anyway, When 3Com took dead aim at Cisco by releasing a new line of advanced switches, it turned to China's Huawei Technologies for help. The switches were developed as part of a joint venture 3Com has with Huawei Technologies, of which 3Com owns 49 percent. The above joint venture has been a well publicized disaster as I understand. The number I recall is that 3Com sources something like $5m per Q from the JV. That's the equivalent of nothing compared to CSCO's quarterly sales. You're reading the PR rather than looking at the monthly sales numbers. In return, China-based companies, sometimes in partnership with U.S. and other foreign companies, are targeting U.S. and foreign markets. With minimal success. It's just not happening. CSCO is not losing share in the European banks to Huawei. CSCO is not losing sales in US universities to Huawei. Australian insurance companies are not buying Huawei switches instead of CSCO switches. The ONLY thing in that article that isn't hype is this sentence (which appears to discuss 3G wireless, not classic CSCO networking): China's Huawei Technologies, for example, will supply a UMTS 3G network to Dutch mobile operator Telfort BV, a deal that could be worth as much as $500 million. And I am inclined to believe it aint true. This Dutch company plans to build its $500m of it network using Huawei sourced equipment rather than equipment from Eirccson, Alcatel, Lucent or Nortel? I would be very surprised.