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

To: Sam Citron who wrote (8759)	9/23/2000 12:37:49 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 324 samples from 5 different distributors. The average sample of desktop disk drive prices rose slightly last week. Weekly average price change (weekly rate): Weighted desktop --- up 0.2% Less than 11gb --- up 0.1% 11gb to 21gb --- even 0.0% Greater than 21gb --- up 0.5% Enterprise --- up 0.2% Current Monthly price change (monthly rate): Weighted desktop --- down 1.1% Less than 11gb --- down 0.6% 11gb to 21gb --- down 0.6% Greater than 21gb --- down 1.8% Enterprise --- down 1.7 Current Quarter price change (monthly rate): Weighted desktop --- down 2.1 Less than 11gb --- down 1.4 11gb to 21gb --- down 2.0 Greater than 21gb --- down 2.3 Enterprise --- down 3.1 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% This is the first week that the weighted average disk drive price actually went up. In the previous best weeks, prices remained even twice in the last year. One week of increasing prices this late in the quarter will have little impact on 3Q earnings. Also, one week is not a trend, but the gain does support theories of either seasonal demand increases or possibly supply shortages because of tight heads or other components. Our reliable sources reported temporary manufacturing shutdowns at TDK/SAE head manufacturing plants caused by flooding or sewer backups. With only a few weeks of drives in the pipeline the shortage could quickly hit the disk drive production. Read Rite and Alps could maybe make up the slack but this is a time when production usually increases to meet seasonal demand. The shortages could result in supply shortages possibly responsible for pricing increases. Regards, Mark