Falling Nortel HW Prices on Ebay affecting decision to buy Nortel

Edwards Finance > Phones

Q. Although I understood the rationale behind the posts that explained this price drop on Nortel hw as somehow related to Nortel's new pricing strategy, it does not seem to wash with me as a logical answer to why prices for Nortel hardware are down A LOT and have fallen EVEN FURTHER since my post of a week ago. Everything is based on supply and demand, if more people want something the price goes up and vice versa. Additionally, if the Nortel pricing structure has been changed to somehow cause hardware to price downward, how come the quote I got a year ago is 22% LESS than the quote I got this year ? Seems Nortel is charging more for their hardware and not less.

A. If I buy an 81 today for $800,000.00 with all the bells and whistles and then throw it on Ebay it will bring almost nothing even if parted out piece by piece. The only conclusion I can come to is there simply is no demand for new/used Nortel hardware today. This trend started about 60 days ago when selling prices dropped about 50% and now this morning hardware like trunk and station cards are close to worthless or will not move at any prices. I am not new to Ebay and Nortel, I have traded there for four years so I know intimately what sells for what price. Large complete Meridian PBX systems have rarely sold well on Ebay, BUT THE COMPONENTS have sold reasonably well catching 20 to 60 percent of their retail depnding on what component was offered. I can find NO NORTEL COMPONENT right now that will sell on Ebay unless you are pratically giving it away. This could be explained if all of the secondary MAC people that used Ebay as a source for hw had gone belly up, but they are all still on Ebay buying other telecom and network, just not Nortel. Cisco is commanding a premium as are other telecom components, but Nortel is in the toilet. (And I am/was pro Nortel and anti-Cisco, so don't think I am plugging Cisco here) I am scheduled to authorize a PO tomorrow after 18 months of fighting to get Nortel in the building instead of some off the wall VoIP solution, I am pretty sure that I am going to be dropping a big bomb at that meeting instead of authorizing a PO when I announce that we will continue to look for an alternate solution since the fate of Nortel Meridian is now highly questionable in my mind. Is there any public source available that shows Nortel Meridian switch sales for the past three years ? As you say, there is at play the law of supply and demand. Most companies I see are hesitant to invest in phone infrastructure regardless of make or model. To get a fair idea you would need to ask the resellers of other telecom products, such as Avaya, Toshiba, or Siemens, and see if there are similar price drops going on. Also, would Nortel's changes in license transfer fees affect the resale market of complete PBXs? And finally, any eBay seller can tell you that summer is a bad time to sell in general. I don't know how accurate an indicator eBay is, in general. I've seen prices on Nortel equipment dropping too, but since most of the equipment that goes up for sale, is bought by a few resellers, it could just be that *they've* got a glut of equipment, right now.

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