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

To: Stitch who wrote (8565)	8/19/2000 2:14:59 AM
From: LK2	Read Replies (1) \| Respond to of 9256

A rant RE planetit.com Why do these Disk Drive executives talk such garbled English? "nonlinear supply of desktop microprocessors that impacted the supply of PCs", a quote from WDC president and CEO, means there weren't enough parts when they wanted them. Also, why do they have such mangled thinking? "executives said that a small shortage of PC microprocessors forced drive makers to again reduce some drive prices by the end of the quarter, raising fears of another price war. As manufacturers like graphics card maker ATI Technologies Inc., Thornhill, Ontario, have noted in previous quarters, a shortage of Intel-compatible microprocessors can keep generic, "white box" PC OEMs from finishing their systems. Lacking a microprocessor, PC OEMs typically put hard-drive purchases on hold." The implication is that by dropping the prices of hard drives, you will be able to sell more drives in the face of declining unit demand, even though unit demand is actually rising. Actually, the decline in unit demand refers to the decline in actual shipments versus forecasted shipments. But why should the disk drive makers start a price war with each other, or accept lower prices? How does that benefit the drive makers? I know disk drive price wars benefit the box makers, but how does it help the drive makers? Or is it business as usual, and that's life, and we serve God, America, the company and shareholder value, but forget about the profits. Maybe that explains why MXTR and WDC rose so strongly the last few days. It's the American way of life. Regards, Larry