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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Mark Madden who wrote (7580)	12/20/1999 11:25:00 AM
From: Mark Madden	Read Replies (1) \| Respond to of 9256

Sarmad - Here are some corrections to my previous post. Stitch's price quotes for components lists "heads $18". I think this means two heads for $18 so I will revise my guess. Message 12216422 If the component costs of a single platter drive are $35, I guess the total costs at $70-$80 including labor and overhead. A two platter drive might cost $100-$110 to produce. An older two platter drive with most of the research paid off may cost $90-$100. Discount retailers would have to make an additional $15-$25 on top of the manufacturing costs. If these guesses are near correct, it is difficult for manufacturers to squeeze much profit margin at today's selling prices. Either lower production that may raise unit production costs or lower prices to maintain market share will put pressure on thin profit margins. Regards, Mark