U.S. technology innovations & trends and intense overseas duplication & competition:|
As happened many times in last 4-50 years, U.S. companies
have invented new technologies and applications and Asian countries like Japan, Korea, China, Taiwan..took the ideas
and started copying and making them in mass with their cheap
labors. Examples: Cars, batteries,TVs, VCRs, Chips, PCs and etc., and U.S. manufacturers have never been able to compete and lost their market shares.
Now,we are noticing again U.S. leadership and innovation in Networking equipments, fiber optic & optical components & equipment, photonics, telecom and wireless systems & equipment, and other broadband related technologies and products. Companies like JDSU, CIEN, CSCO, NT, JNPR, SCMR, A, and etc. represent our new economy and market driving force. These companies have shown great earning..but their P/Es are in some cases extremely high. There will be an intense competition and profit margin reduced. Now, If Asian companies start their duplication and mass production which will happen sooner or later anyhow, where will these high P/E's new economy companies be in next couple years?