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

To: Toko who wrote (8389)	6/3/2000 2:23:00 PM
From: Mark Madden	Read Replies (1) \| Respond to of 9256

Here is a weekend report on disk drive pricing from a sample of retail distributor drives. The drives include 493 samples from 6 different distributors. The average sample of desktop disk drive prices reduced slightly last week. Weekly average price change: Weighted desktop --- down 0.5% Less than 11gb --- down 0.5% 11gb to 21gb --- down 0.5% Greater than 21gb --- down 0.6% Enterprise --- even 0.0% Monthly average price change: Weighted desktop --- down 3.7% Less than 11gb --- down 5.4% 11gb to 21gb --- down 3.9% Greater than 21gb --- down 2.4% Enterprise --- down 1.1% Quarterly price change (monthly rate): Weighted desktop --- down 2.6% Less than 11gb --- down 3.9% 11gb to 21gb --- down 2.1% Greater than 21gb --- down 2.2% Enterprise --- down 2.0% Last Quarterly price change (monthly rate): Weighted desktop --- down 1.5% Less than 11gb --- down 1.1% 11gb to 21gb --- down 1.3% Greater than 21gb --- down 2.2% Enterprise --- up 0.1% The drop in desktop disk drive prices this week appears to be the tail end of a major price reduction occurring over the past 3 weeks at retailers. If prices stabilize at this point we may still have a reasonably good quarter. If prices continue to fall, we will likely not get the positive surprises we are hoping for. These reports partially support the recent Solomon Smith Barney report that claims their may be oversupply of 10gb drives. The price reductions have been sharpest in the less than 11gb category, However, the price reduction has been broad over other categories also. This is at a time when new higher capacity drives are entering the market with higher areal density and fewer components. The higher cost drives are being phased out. Regards, Mark