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To: Zakrosian who wrote (10985)	12/10/1997 10:31:00 PM
From: Think4Yourself	Respond to of 12298

you wrote: If << Demand is not the problem here.>> and <<He (Crisman) did say there were 35% fewer orders than last quarter>>, what does that imply about APM's business right now? Either demand is a problem, or APM is losing market share if the second statement is accurate. ding! ding! ding! ding! We have a winner! Excellent observation. However I agree with Jon that in this case it is a supply problem. When I went to the computer store this weekend, there were so many drives on the shelves that some weren't even in their boxes. They were just stacked up in their antistatic bags (Maxtor drives). The rep said they were selling fast but they could get more real easy. It appears the drive makers overreacted to a drive shortage early this year. Also, PC's are selling well so why would one think demand for drives is down? Same thing is happening in memory chips right now, only worse. Good demand but FAR TOO MUCH supply. The Japanese chip makers are producing at 100% even at almost no profit to amortize their high startup costs. Ken

To: Zakrosian who wrote (10985)	12/11/1997 12:10:00 AM
From: Jonathan Bird	Respond to of 12298

.<< Demand is not the problem here.>> I was speaking in terms of the Drive business. Not he head business. I suppose one could postulate(and many fear) that demand is weakening in the Drive business. But compared to any other sector in our economy the demand for drives is strong. But if the Asian drive makers are dumping then clearly that is an excess of supply. eg supply problem. I think APMs demand problems go beyond the greater demand/supply(dumping) issues in the industry. Jon Bird