The cost of networking kit will collapse during 1998 and the industry will experience its' slowest growth ever.
According to market researchers with the Cahners In-Stat Group, sales will rise by only 8.1 per cent this year, up to $29.1 billion. That's small beer compared to previous increases of over 40 per cent.
The researchers cite the effect on Ethernet prices. Demand for switches is at an all-time high, but prices are plummeting as competition increases, hitting revenues and profit margins. Cahner expects to see a similar pattern emerge across a broad range of kit, including network interface cards, frame relay switches and hubs.
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