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By eweek  |  Posted 2003-04-14 Print this article Print

Most of our peers are not making any money. If youre competing with us on price and youre not making any money, customers kind of understand that. I like our position. Well continue to come down the price-performance curve ahead of Moores Law at 20 to 50 percent a year—not stair-steps, but in big jumps.
What we did with the 6000 pricing [recently] is we priced our gigabit capability at the 10/100 [Ethernet] capability. Thats a tenfold increase in price-performance in one year.
Two years ago, we were leaders in a race that was going 200 miles an hour. Were now leaders in a race thats going 100 miles an hour. And our lead is actually larger than before. Weve refocused our whole company on profit contribution. We used to do 10 different router families. Were now going to do one throughout, with common ASICs and common software. Youll see many more efficiencies. We did the same things in switching. We had major price performance improvements or price reductions in all ten of our major product lines last year. We will compete on price, but price is the number three, four or five customer decision criterion. eWEEK: It sounds like a compelling message, but is Wall Street convinced? Youre buying back stock, for example.


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