To: Stan J. Czernel who wrote (54310 ) 5/8/1998 1:17:00 PM From: Gottfried Respond to of 58324
Stan, you asked >It seems that floppy drive and diskette manufacturers must be hurting badly. Where are they making any money? < Good question. I would guess floppy drives go for about $15 to OEMs. Floppy disks can't be a profit center either, since sometimes they're free after the rebate. Maybe Reseller can tell us more. Yet, DiskTrend expects floppy drive volume to grow slightly (at a decreasing rate) through 2000. From DiskTrends 1997 removable storage report... [snip] Here are other highlights from the 1997 DISK/TREND Report on removable data storage: After the 1995 market entry by Iomega's Zip 100 megabyte floppy drive, followed by the 1996 appearance of the LS-120, a 120 megabyte drive backed by several companies, sales of the new products surged. Shipments of high capacity floppy drives jumped to 3.9 million units in 1996, and the DISK/TREND projection for the group in 2000 is 26.6 million drives. Exploiting the right combination of disk capacity and price, the new high capacity floppies have tapped a growing market with many personal computer users who find it convenient to keep individual projects on separate disks and others who are prudent enough to back up key data stored on their new higher capacity hard disk drives. High capacity floppy drives will take over most of the growth in overall floppy drive shipments during the next few years, but the standard 3.5 inch 1.44 megabyte floppy drive is expected to survive for many years, with shipments of 101.3 million drives forecasted for 2000. Despite competitive claims to the contrary, low capacity floppy drives are still considered adequate for storing and interchanging word processing and similar computer projects, and their very low price makes them hard for personal computer manufacturers to abandon. Annual shipment increases for low capacity floppy drives are forecasted to decline to a negligible level in 2000, and the average OEM price per drive is projected at $14. [snip]disktrend.com GM