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Cisco gets into consumer electronics

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Cisco sees a growing percentage of its future business coming from consumer electronics. The networking giant believes increasing demand for networked devices will allow it to compete with the likes of Sony and Samsung.

In an interview with the Financial Times Charles Giancarlo, chief development officer at Cisco, said that increasing demand from customers for devices which link to the Internet gives Cisco the chance to get into a new market.

He said: "Consumer electronics companies have been able to compete on a standalone device but the dynamics of the market are changing. The Internet and new networking requirements are enough of a disruptor for us to enter a new market."

According to the paper, Cisco's relationship with "online content companies" like Google and Yahoo! will also give it in an advantage over existing device companies.

Of course, Cisco does not only sell big routers to telcos - it owns Linksys which makes wireless home routers, webcams and other accessories. In early January Cisco made an investment in Zensys - a company which makes home control devices. ®

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