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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Narotham Reddy who wrote (20762)	11/3/1997 7:19:00 PM
From: Larry J.	Respond to of 61433

>>>Schneider said Ascend will likely have to reduce the list prices of its access concentrators between 20 to 30 percent in the first half of 1998<<< This is not as bad as it may seem for several reasons: 1. Who pays list price in the first place. You can be sure that any significant customers are already enjoying a substantial discount structure, and that any further discounts will be minimized. 2. Ascend will (is) beat (ing) the you know what out of their suppliers to get cost reductions on everything from semiconductors, fab, contract manufacturing, and everything in between. There will not be a direct 20 -30% hit to Ascend on these products.. 3. Market-share will not be given away to COMS, BAY, CSCO and the like without a fight. I think that increasing volume levels and holding marketshare is far more important than upholding margins while the competition eats their lunch. Larry