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Technology Stocks : QUANTUM
QNTM 9.700-15.0%Nov 28 9:30 AM EST

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To: UpwardBound who wrote (7491)3/11/1998 11:27:00 AM
From: LK2  Read Replies (2) of 9124
 
>However, I don't think that this product family [Bigfoot] was designed to be selling for less than $100< I agree completely, even if I don't know what I'm talking about. Bigfoot wasn't designed to sell for less than $100, and the desktop and high-end drives weren't designed to sell for what they too are selling for today.
So either disk drive prices have to rise, which is something the drive makers have little control over, or: the drive makers have to adjust to current conditions and:
1. focus on staying alive, which is the first priority
2. figure a way to make drives as cheaply as possible.
3. current high-end drives, the former prosperity hope, are mainly a source of revenue, because of increased competition/overcapacity/whatever.

Nobody knows how long the current glut will last. Certainly, the small investor is the last to know, even if he's following the sector.

But the business of the drive companies is to make money. Can they figure out a way to do this reliably?

Larry

PS: I'm not trying to be negative, I'm just saying that companies are supposed to make money, even if it's not always easy. How much longer is the disk drive sector going to be stuck in a boom-and-bust cycle?
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