Price pressure resulting from the product war between Intel and 3Com is pushing its way down the industry as networking company Allied Telesyn said today it is competing against Taiwanese clone manufacturers.
Ernie Jones, managing director of Allied Telesyn in northern Europe, said he had cut a deal with 12 European distributors to alert them to the incursion of kit from abroad, particularly Taiwan.
He said: ?We will run a promotion to enlarge our buying base and partnering with 12 of the major distributors in Europe.? Those include Anixter, C2000, Frontline, Micro Peripherals in the UK and Compricon in the Netherlands, he said.
?We want to make sure that more Vars see our products and the distributors will email out 20,000 flyers,? Jones said.
?We?re going to go on the offensive. The price battles between Intel, 3Com and Bay are causing pressure to look at other companies. We want to dominate the low end market.?
Jones said that companies from Taiwan, including Accton, Addtron and Ethercom, were offering lower priced networking products but Allied Telesyn will give better margins and conditions. He said: ?We will offer frequent buyers points and cash refunds. Our promotion will let them buy unmanaged hubs, switches and transceivers at half the price of our competitors.?
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