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Reaction to the Cisco/SFA deal by: byronangel (M/Washington State) Long-Term Sentiment: Strong Buy 11/18/05 10:20 am Msg: 89025 of 89038 From the Wall St. Journal: Cisco has made no bones about its ambitions to be the leading equipment supplier as the Internet evolves to take over functions that were long carried out by separate entertainment, voice and data networks. But in doing so, it has to penetrate an area that has been dominated by a duopoly of Motorola Inc. and Scientific-Atlanta. Set-top boxes play a key role in determining what features can be offered on the TV screen. Scientific-Atlanta has about 40% of the U.S. set-top box market, or roughly 56 million cable devices in U.S. households. Its largest customer is Time Warner Inc.`s cable division. Demand for set-top boxes is expected to intensify as competition heats up in the TV distribution business and technology makes possible a wide array of advanced TV features. Roughly 300 million analog televisions will need some form of converter to work with the digital broadcast signals required by the government by 2009. At the same time, telephone companies, like SBC Communications Inc. and Verizon Communications Inc., are racing to provide television service, opening a new market for set-top boxes. *********************************************** Cisco is already relying on SIGM in its Kiss product line. If Cisco/SFA relies more on SIGM than on STM and this deal causes a shift in business from STM to SIGM, it`s a huge win for SIGM. Also, I think the fact that Cisco, a huge company that is only interested in huge markets, is buying SFA proves that set top boxes are about to become a huge market. Byron |
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| aus der Diskussion: | SigmaDesign - kurz vor break des ATH |
| Autor (Datum des Eintrages): | amorphis (18.11.05 16:54:53) |
| Beitrag: | 631 von 4,073 (ID:18868816) |
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