Disk Drive Sector Discussion Forum Message Board

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Technology Stocks : Disk Drive Sector Discussion Forum

WDC 204.62

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To: Gus who wrote (8774)	9/29/2000 1:16:19 PM
From: Yogi - Paul	Read Replies (2) of 9256

Gus, Chase comments re: components <<We expect general softness in desktop demand, C2Q inventory builds, and lower pricing to create a challenging scenario for Maxtor to meet C3Q-00 revenue estimates. However, semiconductor suppliers to the drive industry have either underinvested in capacity, have yield issues, or are walking away from business to supply alternate industries. We now believe the near simultaneous 20GB/platter ramp will produce a run on the same components, including recording heads, creating a shortage throughout the industry. As a result, pricing should-at worst-stabilize and could-at best-increase, driving upside as PC demand rebounds in the strongest seasonal quarter. Additionally, we believe these shortages could accelerate the long-term industry trend towards consolidation as larger vendor's should be able to garner greater component supply. >> Paul

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