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

To: Stockman_77079 who wrote (15444)	5/5/1998 9:07:00 PM
From: joe	Read Replies (1) \| Respond to of 45548

>>educational institutions and health care systems.<< What's wrong with these? If COMS can increase profits through them, I won't complain. regards

To: Stockman_77079 who wrote (15444)	5/5/1998 10:25:00 PM
From: Mang Cheng	Read Replies (1) \| Respond to of 45548

Very interesting article about intel invasion of coms : "Can Intel Duplicate Success In Other Markets?" Networking In the spring of 1997, Intel rolled out a new line of Fast Ethernet-based chips and LAN cards, along with hubs and switches for use in small offices. The company sparked a furor by bringing out its products at much lower prices. Wall Street promptly battered the stock of 3Com, Cisco, and other LAN equipment makers. Although Intel stimulated demand for Fast Ethernet-based products in the market, its moves cut into its own margins as well as into its competitors', according to Scott Randall, a senior analyst at Soundview Financial Group, in Stamford, Conn. Its pricing strategy quickly made Intel the world's second-largest maker of LAN cards, behind Santa Clara, Calif.-based 3Com. In total, the company realized about $500 million or so in sales from its networking business. But those numbers do not tell the entire story, Randall said. "Frankly, I think they are struggling a little bit in networking," he said. "It's not one of their most profitable units. ... If Intel is making money, it's not by much." Nevertheless, Intel pressed on last week, entering the 1-gigabit Ethernet market with a line of chips, modules, and switches. Later this year, the company plans to join the home networking market with a new line of products, said Dan Sweeny, business manager at Intel's newly formed Home Networking Operation, based in Hillsboro, Ore. techweb.com Mang