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 : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (11064)	12/2/1997 12:50:00 PM
From: craig crawford	Read Replies (2) \| Respond to of 45548

<< When Intel lowered NIC prices early this year and 3Com matched the cuts, 3Com gained market share on Intel. >> While the most recent numbers showed COMS shipped 2.14 million external NIC's to INTC's 1.34 million, the latest Dell'Oro (3Q) numbers showed INTC overtook COMS in the embedded NIC market. INTC's shipments grew 60% over the previous quarter. How exactly is that a rejection of INTC's strategy? << You be the judge. If Intel doesn't cut prices, there is no other competitor large enough to affect the market. >> Tell that to CPQ who just formed an alliance with INTC encompassing many technologies but most specifically NIC's. Alan Lutz (head of Communications Products Group at Compaq): VB:Why commit to one vendor [Intel]? Why didn't you leave your NIC options open? Lutz: Well, we had two choices, Intel or 3Com, and the process of formulating a strategy was heavily centered on market research. I've had several outside firms assisting us with the research during the course of this year. Customers don't believe that the NIC is a sophisticated edge device as 3Com does. They believe that something that cost $50 should be inserted in the machine when built; it should work when turned on and never fail. Their belief is that it can't be that complicated if it costs only $50. 3Com talks about it as being the edge of the network. They talk about applications requesting the edge of the network and RMON being done from the edge of the network. The customers that we researched, and we did research a lot of them, say, "All we want this to be is an interface to the network. Don't try to make our lives complicated with the sale of an edge device." They see that strategy as tying them to that vendor.

To: Elroy who wrote (11064)	12/2/1997 1:30:00 PM
From: craig crawford	Read Replies (1) \| Respond to of 45548

<< 5 - Hub/Switch/Router business is getting more competitive: Yeah, that's because Cisco, Bay and 3Com are doing incredibly well and everyone else is losing. 3Com remains #1 in low end, high volume hubs and switches. >> If you want to know who is really doing well in the "systems" market just take a look at the charts of the companies involved. C$CO=Uptrend BAY=Recent uptrend CS=Major downtrend COMS=Major downtrend That's all you need to know about who is winning. << 6 - Remote access concentrator business is slowing: That means less people are getting connected to the Internet. Who thinks this is the case >> Nobody said the business was slowing (some say the rate of growth is moderating). Prices and margins are falling. I think the disk drive makers are still selling plenty of disk drives. That doesn't mean they are making any money at it though. << Lets face it, there is little reason for the big drop in 3Com's share price over the past month except for USRobotics channel inventories >> Completely and utterly wrong.