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

To: Sam who wrote (8483)	7/16/2000 2:19:31 AM
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 385 samples from 6 different distributors. The average sample of desktop disk drive prices decreased slightly last week. Weekly average price change (weekly rate): Weighted desktop --- down 0.6% Less than 11gb --- down 1.0% 11gb to 21gb --- down 0.6% Greater than 21gb --- down 0.5% Enterprise --- down 0.4% 3nd Calendar Quarter price change (monthly rate): Weighted desktop --- down 1.4% Less than 11gb --- down 2.3% 11gb to 21gb --- down 1.1% Greater than 21gb --- down 1.6% Enterprise --- down 2.2% 2nd Calendar Quarter price change (monthly rate): Weighted desktop --- down 3.0% Less than 11gb --- down 3.7% 11gb to 21gb --- down 2.8% Greater than 21gb --- down 2.6% Enterprise --- down 1.7% 1st Calendar Quarter 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 SEG conference call indicated drive pricing reduced more than anticipated last month in the desktop segment. The pricing reduction occurred particularly in the last month of last quarter. They credited the price reductions to lower demand because of reduced shipments of PCs. Component shortages reduced the shipments of PCs. The component shortage should be temporary and may even create backlogs to be worked off in the coming quarters. SEG also stated product transitions reduced pricing as manufacturers clear out old inventory. The transition to 15GB platters occurred for many manufacturers last quarter reducing the prices of 8 to 10 GB platter drives. We can expect to see more product transitions as 20 GB platter drives hit the market this quarter. Regards, Mark