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

To: Mark Madden who wrote (8286)	4/22/2000 4:18:00 PM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 9256

>> The same distributor reduced IBM prices 45% in the enterprise sector. << Mark, It seems this kind of data is never easy to interpret. But I wonder if the distributor merely removed obsolete models from their catalog. Which means the price reduction really took place a while ago (when the new models were introduced). My guess is that when old models are listed at (currently) too high prices, they really do not sell at all. This point seems like hair splitting, but it is not. I want to know whether there was a sudden 5% drop in price last week, or simply a recognition that the catalog needed cleanup. My guess is that there was no sudden price drop, but a gradual one leading to the same effect. Which means the reduced prices were already baked into the Q results of WDC and Maxtor at the time they said they will have better than expected results. For me it is very difficult to reconcile the strong results at AMD and INTC with any supposed weakening of PC sales. But then I remember a few weeks ago there were the reports of pressure on enterprise drives as justification for the SEG BO (it is not really an LBO, since there is not much leverage involved). As usual, thanks for sharing the report. -Sarmad