Disk Drive Sector Discussion Forum Message Board

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Technology Stocks : Disk Drive Sector Discussion Forum

WDC 269.39

-7.2%

Feb 4 3:59 PM EST

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To: Will Cunningham who wrote (1772)	12/12/1997 3:44:00 PM
From: Z Analyzer	Read Replies (2) of 9256

Let me pose another question. If the basket of Asian currencies where most of the disk drive industry compnents and assembly take place, have fallen by somewhere in the range of 25 to 50 percent on average, does it not follow that all else equal, we could expect that disk drive revenues and profitability would be adjusted downward by a comparable amount. This assumes the gross margins remain constant. Certainly, so far, we have not seen any evidence of revenues falling less rapidly than costs since gross margins are obviously not expanding. Since most PC components are in a similar situation, the next question is when dramaticaly lower PC prices will significantly broaden the market to make up for the revenue loss.

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