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

To: LK2 who wrote (8924)	12/9/2000 12:49:20 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 samples include 365 drives from 5 different distributors. The average sample of desktop disk drives remained stable last week. Average price change this week (weekly rate): Weighted desktop --- down 0.2% Less than 11gb --- down 0.2% 11gb to 21gb --- even 0.0% Greater than 21gb --- down 0.6% Enterprise --- down 0.2% Current Quarter price change (monthly rate): Weighted desktop --- down 1.0% Less than 11gb --- up 2.2% 11gb to 21gb --- up 0.8% Greater than 21gb --- down 3.5% Enterprise --- down 1.1% 3rd Quarter price change (monthly rate): Weighted desktop --- down 1.9% Less than 11gb --- down 1.3% 11gb to 21gb --- down 1.7% Greater than 21gb --- down 2.3% Enterprise --- down 2.9% 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% Prices of the higher capacity drive samples stabilized last week after 3 weeks of falling prices. The production costs of higher capacity drives is likely falling fastest as manufacturers convert production to higher density platters. The Quarter’s margins will be highly dependent on the mix of higher capacity drives. With PC growth slowing it hard to imagine new markets being strong enough to pick up the slack yet. Perhaps it is a combination of new markets, higher retail sales and HDD’s curtailed production that is keeping the supply/demand ratio balanced. Could it be component makers that have the control to limit oversupply? The sample pricing continues hold better than the last December quarter that averaged 1.7% decline at this point and ended at 1.6%(monthly rate). Regards, Mark