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


To: Xpiderman who wrote (27388)2/3/1999 10:03:00 AM
From: joe  Respond to of 45548
 


>>How a soft LAN switching pricing is to COMS advantage? I thought the LAN switchings are COMS's "high end" systems, compareing to modems and NICs.<<

Because CSCO is more dependant on high margins. COMS is not
as dependant on high margins. They are more into manufacturing
efficiencies than CSCO. It's the natural way technology
progresses.

Also, the LAN switching is not necessarily the real "high end"
system equipment.



To: Xpiderman who wrote (27388)2/3/1999 11:35:00 AM
From: Steve Porter  Read Replies (1) | Respond to of 45548
 
Xy,

CSCO is expereiencing soft pricing in LAN switch because they historically over charge and they are having to bring their prices into line with COMS in order to compete.. it's that or lose market share. This means that COMS is taking market share from CSCO as people will not pay for the CSCO premium when buying netowrk switches.

Steve