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: Shroder Wertheim (Hijacked) who wrote (22670)	10/10/1998 6:58:00 PM
From: joe	Respond to of 45548

>>Hayes bankruptcy and Diamond big loss mean USR modem market shares increase. Many corporation will simply not buying products from financial shaky company. This also means stable price, when you are losing money, you can cut too much price.<< Exactly, that's what we've been waiting for. Hopefully by 4th quarter (non COMS calendar), COMS can crank out much more profits from modems due to 1) further manufacturing efficiencies, 2) higher prices due to monopoly in market share, 3) it will become more obvious that x2 modems are far superior in quality to any other modems, 4) and a very significant increase over 28.8 modems...not to mention the millions of 14.4, etcs still out there.

To: Shroder Wertheim (Hijacked) who wrote (22670)	10/11/1998 8:15:00 PM
From: Bruce L	Read Replies (2) \| Respond to of 45548

<Hayes bankruptcy and Diamond big loss mean USR modem market shares increase.> I agree. And it's a point that has not been widely noted (as far as I've been able to tell) The perception has been that modems are just a "commodity." But there are major economies of scale in producing 10 million modems a year as opposed to 500,000. COMS can produce them cheaper than Hayes et. al. Further, COMS can spread the R&D necessary to stay ahead of the financially stressed competition over a far larger base production so that the competition never can catch up. COMS may be close to having, in effect, a monopoly. Box makers - and I have Compaq in mind particularly- have been, and will, try to keep COMS honest by placing their orders just to maintain some viable competition but I suspect that they may be near to capitulating. Why pay a premium price for an inferior product and risk losing business because of it?