Maxtor Raises Prices for Hard Disk Drives
Price increases are in response to strong demand and insufficient supply
at key capacity points
MILPITAS, Calif., November 9, 1999 — MaxtorÒ Corporation (NASDAQ:MXTR) today announced that it raised prices in the distribution channel on its highest volume hard disk drive products. The price increase went into effect in distribution channels worldwide on Monday, November 8, 1999 and is the most recent move in a series of price actions by the company during the quarter. Maxtor has also raised prices selectively at OEMs over the past four weeks.
"Price declines have been at unprecedented levels for nearly one year," said Mike Cannon, Maxtor's president and CEO. "While customers have greatly benefited from this, these price declines cannot continue indefinitely at this rate. The current imbalance in supply and demand gives us the opportunity to moderate pricing which will help ensure that customers continue to have competitive supply choices in the future."
Maxtor has increased prices in the distribution channel on products in the 4 to 8 GB range and selectively at OEMs on products from 4 to 13.5 GB.
About Maxtor
Maxtor Corporation is a leading supplier of information storage solutions. Maxtor has been the fastest growing supplier of hard disk drives over the past two years, more than doubling its share of the desktop market during that time. The company's current hard disk drive products include the award-winning DiamondMaxÒ and DiamondMax Plus line of products for mainstream and high-performance personal computers, the DiamondMax VL line for sub-$700 PCs and consumer electronics opportunities. For network file sharing applications, Maxtor offers the new MaxAttachä line of network attached storage appliances. Maxtor's market leadership position has been built by consistently providing leadership products, and by delivering high levels of quality and support for its customers. More information about Maxtor and its products can be found at maxtor.com or by calling toll-free (800) 2-MAXTOR. Maxtor is traded on NASDAQ under the MXTR symbol.
This release contains forward-looking statements concerning the hard disk drive industry and Maxtor's view of the pricing environment. These statements are based on current expectations and are subject to risks and uncertainties which could materially affect the company's results, including, but not limited to, market demand for hard disk drives, the supply of hard disk drives relative to demand, pricing trends, market acceptance of the company's products, the company's ability to execute future production ramps and utilize manufacturing assets efficiently, changes in product and customer mix, and actions by competitors. These and other risk factors are contained in Maxtor's Registration Statement on form S-3 as well as in its periodic reports filed with the SEC. The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of such statements. |
