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

To: Z Analyzer who wrote (2257)	1/14/1998 1:58:00 AM
From: Z Analyzer	Read Replies (3) \| Respond to of 9256

I was shocked that Intel was able to beat estimates given the magnitude of the price reductions last quarter (about 50% on several mainstream chips like 200 MMX). I can only conclude that volumes must have been very strong although the only indication in their press release was the comment about record microprocessor shipments. If volumes were in fact very strong perhaps a large chunk of the disk drive inventories have been consumed. After all, we only know after the fact when excess inventory has arisen so it stands to reason that we wil be the last to know when inventories come back in line. Any comments?

To: Z Analyzer who wrote (2257)	1/14/1998 10:17:00 AM
From: nonzeroa	Respond to of 9256

<<<<Do you think the probablities are additive? Obviously the point I'm trying to make is that brutally low pricing (.02/M by end '98) may lead to some self correcting of overcapacity.>>NONZEROA, Why do you keep referring to this highly unlikely price as if it were a fact which the world will revolve around. I suspect it is below everyone's cost of production.>> Hey, Pierre-X used it first! I just wanted to gauge how widely accepted this assumption is. Your point is well taken.