Santa Clara, California-based SynOptics Communications has reduced the cost of two of its 10Base-T Ethernet hubs by 25%. The 3308 host module and the 3307 50-pin version have both been cut to $2,500. SynOptics says that the reason for the price cuts is a 20% to 30% reduction in manufacturing costs, brought about by streamlining the process through computerisation. Just-in-time processes have been set up to eliminate inventory carry cost, greater data collection on component failure has improved yields and environmental screen testing has automated the testing process. A SynOptics spokeswoman said that the company always tries to pass on manufacturing savings and the company quotes Boston, Massachusetts-based market research firm the Yankee Group to illustrate the health of the 10Base-T market – by 1992, nearly 70% of Ethernet LAN connection shipments will be unshielded twisted pair; 80% of these connections will be 10Base-T. SynOptics has hung its hat on the 10Base-T market its was instrumental in the formation of the IEEE 802.3 10Base-T Task Force and currently holds the chair position of the committee. Both the reduced modules are integrated into the System 3000 intelligent hub and support large 10Base-T networks.
