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Technology Stocks : Diamond Multimedia -- Ignore unavailable to you. Want to Upgrade?

To: Jim Goodman who wrote (3596)	6/12/1998 8:49:00 PM
From: Synapsid	Read Replies (1) \| Respond to of 4679

Regarding fundamentals, there have been numerous reports about price pressure in the graphics add-in board market, the latest of which the warning issued by Creative. However, I think Diamond is relatively well-positioned to get through this period. Just from watching ads, it appears that Diamond has in the past few months reduced the price of its flagship Viper V330 product (which has very strong brand name recognition) from high-end levels (say $150) to mainstream levels, bordering on the low-end (below $80). One could interpret this move as Diamond trying to get rid of excess inventories. However, I believe Diamond is managing to keep sales up by the repositioning of the Viper product, and although having to compete fiercely on price, I believe Diamond's market share is holding up very well (at the cost of competitors). The repositioning of the Viper V330 product does do damage to the "Viper" name -- no longer associated with a strictly high-end product. This is just a theory on what is going on.