Friday, December 5, 2008

Cisco, Dell Risk Losing Sales as Recession Fuels Grey Market

This is long overdue, really:
The remnants of businesses crushed by the economic slump now sit in Liquid Technology Inc.’s warehouse by the Hudson River in New York’s Chelsea district.

Hundreds of servers, personal computers and routers -- some shrink-wrapped, some on pallets, some tossed in a cardboard box to be made into scrap metal -- fill the 11,000-square-foot warehouse of the company, which buys liquidated technology and sells it for pennies on the dollar.

“There’s a lot of bad news driving the business,” said Richard Greene, Liquid Technology’s vice president of operations. “It’s the first wave of the tidal wave.”

The wave may sweep away sales of new systems from companies like Cisco Systems Inc. and Dell Inc., which are already suffering amid the recession and increasingly competing with sellers of their own used products.

From Bloomberg. Myself, I don't see this as a bad thing; it might keep old hardware out of landfills. Tough for the manufacturers, though.

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