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

To: Sheba who wrote (1779)	12/14/1997 12:08:00 PM
From: Gus	Respond to of 9256

Sheba, This ZDNET article also describes how Dell is one of the top 4 PC makers growing faster than the market and how it derives 90% of its revenues from corporations. Regarding the latter, you want to see how Dell is going to react to the sub-$1,000 corporate PC and laptop PC trends just starting to gather steam. The catch for the component suppliers is that Compaq is demanding- and getting-low prices for those computer parts that are hidden under the hood. Who brags to their buddies that they have a Western Digital disk drive? No one. The lack of pricing power has pounded these companies' profits, and electrocuted their stocks. Patrick Tenney, who follows the storage industry at BancAmerica Robertson Stephens, says the disk drives used in sub-$1,000 PCs are priced at about $100 - a point at which it has been historically difficult for drive makers to turn a profit. Tenney doesn't believes the sub-$1000 PC market is cannibalizing sales of more expensive boxes yet, but admits the trend isn't helping matters. "Clearly, the mix is not beneficial for the disk-drive companies," he said. www5.zdnet.com From Businessweek's latest cover story on Intel... Analysts figure sales of sub-$1,000 PCs will climb 33% next year vs. growth of 20% for the PC market as a whole. Even more telling, computers selling for $1,500 or less could mushroom from 39% of the U.S. consumer market this year to nearly half of the market by 2001, according to market researcher International Data Corp. (IDC). businessweek.com

To: Sheba who wrote (1779)	12/14/1997 11:47:00 PM
From: Gus	Read Replies (2) \| Respond to of 9256

Has Dell Lost Its Pricing Edge? (12/13/97; 12:23 p.m. EST) By Craig Zarley and Christina Torode, Computer Reseller News The party is over. The price delta between the channel's offerings and Dell Computer's has all but vanished, blunting the direct vendor's momentum in commercial accounts. The startling turnaround has long been predicted, but it comes much sooner than expected. Channel executives expected the momentum shift to take hold by midyear 1998. But a "win at all costs" attitude by indirect vendors Compaq Computer Corp., IBM Corp. and Hewlett-Packard Co., coupled with cost savings realized from channel assembly and build-to-order strategies, has pushed the timetable ahead... techweb.com