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Technology Stocks : Disk Drive Sector Discussion Forum

WDC 163.00

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3:59 PM EST

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To: Stitch who wrote (8983)	1/17/2001 9:05:49 AM
From: Sarmad Y. Hermiz	Read Replies (1) of 9256

>> I am not sure what you are seeing but Seagate has five very large authorized distributors in the US including << I am looking at on-line retail distributers. I was specifically addressing the point that Seagate might be carrying on an aggressive price war to possibly bankrupt WDC. The reason I bring these examples is to show that Seagate prices are not lower than others (in fact they are higher), that they are not flooding the channel (in fact seagate products are very scarce at retail shops. They are not available at CompUSA. So the point is Seagate is exercising restraint in production and pricing. The further point is that DD makers used to make large profits on half or a third of the current unit volume. Then they somehow fell into an idiotic price competition which destroyed their profits. So the next conclusion is that increased volume does not lead to profits. And so there is no need for hand wringing about reduced PC shipments inevitably leading to losses at DD companies. As you point out the key is inventory turns. If the drive companies can produce 13 or 14 turns per Q, then the channel will have only a couple weeks of inventory. And even though technology moves fast, inventory does not become obsolete in two weeks. It is that obsolesence that causes losses. When warehouses full of product have to be dumped at steep losses. Remove that factor, and profits are assured. ---------------------------- Here's what insight has: There used to be many more models a year ago. Now only two. Barracuda. ATA II ST330630A SEAGATE 30.6GB EIDE 7200RPM BARRACUDA Search similar products 5451 In Stock. $ 159.99 Cheetah X15 18.4 18.4GB ULTRA 160 SCSI 15K RPM INT CHEETAH 68PIN 3.5LP Search similar products 76 In Stock. $ 489.99 SEAGATE 20.4GB EIDE ULTRAII ATA/66 7200RPM Search similar products Ordered upon request. $ 122.99 --------------------------- and CDW Seagate Barracuda ATA II 30.6GB EIDE Hard Drive 30.6GB, 7200 rpm, EIDE Ultra ATA/66 internal hard drive 214231 Add to Cart Same Day $149.77 Seagate Barracuda ATA II 20.4GB EIDE hard drive 20.4GB, 7200 rpm, EIDE 3.5" internal hard drive for PCs 222354 Add to Cart Same Day $129.72 ---------------- I am very interested to know the opposing argument. Regards, Sarmad

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