Disk Drive Sector Discussion Forum Message Board

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Technology Stocks : Disk Drive Sector Discussion Forum

WDC 175.05

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To: Yogi - Paul who wrote (8367)	5/27/2000 7:04:00 PM
From: Mark Madden	Read Replies (2) of 9256

Here is a weekend report on disk drive pricing from a sample of retail distributor drives. The drives include 504 samples from 6 different distributors. The average sample of desktop disk drive prices reduced sharply last week. Weekly average price change: Weighted desktop --- down 2.1% Less than 11gb --- down 3.6% 11gb to 21gb --- down 1.4% Greater than 21gb --- down 1.8% Enterprise --- down 0.2% Monthly average price change: Weighted desktop --- down 3.8% Less than 11gb --- down 5.6% 11gb to 21gb --- down 2.8% Greater than 21gb --- down 3.5% Enterprise --- down 0.6% Quarterly price change (monthly rate): Weighted desktop --- down 2.7% Less than 11gb --- down 4.0% 11gb to 21gb --- down 2.1% Greater than 21gb --- down 2.2% Enterprise --- down 2.1% Last Quarterly price change (monthly rate): Weighted desktop --- down 1.5% Less than 11gb --- down 1.1% 11gb to 21gb --- down 1.3% Greater than 21gb --- down 2.2% Enterprise --- up 0.1% The weekly drop in disk drive prices was the sharpest weekly reduction in the seven months of keeping records in this fashion. It was likely the size of reductions that occurred regularly a year ago. Although the weekly figures included realignment of products for two of the six retailers I monitored, I think the drops reflect catch-up for those two retailers. The price drops have the same impact as smaller price reductions over time and need to be included in our quarterly numbers. I characterize the quarter as having many new product introductions. The 359 desktop samples include 115 new drives appearing at retailers this quarter, which is less than two months old. The two retailers mentioned above had 45 new drives this week that contributed to the re-pricing of older models. The latecomers are still coming out with 10gb per platter drives. The first to market leaders are enhancing their products with larger drives and 7200 rpm drives. Maxtor is introducing 15gb per platter drives. Many of the new products will have higher margins even with the price reductions we are seeing. Regards, Mark

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