Cisco is in trouble after reports surfacing about their products sold in recent quarter have been dropped to 15%. This concern is valid as last year at same quarter performance was much better.
Although Cisco is offer home based video conference via UMI Web Connected cam that can be fit on top of the TV. The reason behind this was to promote company presence in every house while introducing such solutions for everybody. This was good step towards enhancement of people interaction on enterprise level Telecommunication but price was way too high and stands at $600 plus $25 of every month usage.
If we look closer price play important factor in downgrading sale of UMI and people stay out of reach except their wireless router sale. Cisco orders rose up to 10 % last quarter as compared to last year in same quarter.
According Wall Street Analysis following is a profit comparison between last and current fiscal year:
|Year||Quarter||Net Profit||Decrease||Shares devalued|
|2011||2nd||$9.8 Billion||18% ($1.9 Billion)||37%|
In recent company conference call Cisco believes apart from the UMI the rest of Cisco products sales grew up to 8% overall. Even Cisco team admits that UMI experiment unable to cop the market as they were expected. As per Wall Street analysis Cisco would earn approximately 40 cents per share in next quarter.