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

To: appro who wrote (8432)	6/25/2000 3:03:00 AM
From: Mark Madden	Read Replies (2) \| Respond to of 9256

Here is a weekend report on disk drive pricing from a sample of retail distributor drives. The drives include 455 samples from 6 different distributors. The average sample of desktop disk drive prices remained stable last week. Weekly average price change: Weighted desktop --- down 0.1% Less than 11gb --- even 0.0% 11gb to 21gb --- down 0.1% Greater than 21gb --- down 0.1% Enterprise --- up 0.1% Monthly average price change: Weighted desktop --- down 3.5% Less than 11gb --- down 2.7% 11gb to 21gb --- down 3.7% Greater than 21gb --- down 4.1% Enterprise --- down 1.8% Quarterly price change (monthly rate): Weighted desktop --- down 2.9% Less than 11gb --- down 3.8% 11gb to 21gb --- down 2.7% Greater than 21gb --- down 2.5% Enterprise --- down 1.7% 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% This weekly change includes a short week because last weeks sample was taken Wednesday. Price reductions this late in the quarter will have little impact on quarterly earnings. We are in a period where manufacturers might issue warnings if they have any surprises. The price reductions were mild enough for the quarter that they will likely be a non-issue. Earning will be more dependent on the quantity of drives sold and the cost reductions achieved through the quarter. Cost reductions should exceed the price reductions because increased areal density has reduced components on most drives. About 55% of the sampled desktop drives have been added during the quarter. Regards, Mark