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Technology Stocks : Diamond Multimedia

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To: Jonathan Quick who wrote (3504)3/24/1998 10:35:00 PM
From: lml  Read Replies (1) of 4679
 
Jonathan:

I understand your perspective on this segment of the computer biz. Profit margins are narrowing; lifecycles are shortening; inventory management & competitive pricing have become crucial to achieving optimal bottom line results.

But counter-balanced against these factors representative of a maturing market is overall market growth as measured by increased volume of unit sales, as well as creation of new market segments for the PC defined by price -- high-end, low-end, & PCs between; and new product lines such as that created by the introduction of DVD to the PC.

DIMD appears to have been successful toward establishing a strong market position for itself in all of these "emerging" markets. Granted profit margins will be squeezed & so will the bottom line of low-volume producers. But what effect will all this have on the bottom line of a high-volume producer such as DIMD?

Interested to hear your thoughts on this matter as well as thoughts by others.

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