Kurt,
RE: "So don't think the Japanese are dumping hdds, it just costs them a lot less to produce them now."
The cost for the Japanese is the same in Yen, however, the Yen is now worth 50% less against the dollar than it was two years ago. This results in lower prices for Japanese exports to the US and higher prices for Japanese imports from the US. For example, Japan sells product A to the US for $100US, when the Yen is 100 to the US dollar -- the total is 10,000 Yen, when the Yen is 120 to the US dollar the price can drop to $84US -- 10,080 Yen total, OK, so it's a bit less then $84US, so the company makes a bit more profit. Two years ago 88Yen=$1US, today it's 128Yen=$1US. So, I don't think charges of dumping will stick. May see same story with South Korea and the Won in relation to DRAM and computer sales in general -- Samsung just nosed out Compaq as the leading PC vendor in Asia (don't remember if it was for 3Q only or for YTD).
Reguards,
Rich |
