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

To: Mark Oliver who wrote (6144)	4/26/1999 8:46:00 PM
From: Z Analyzer	Read Replies (2) \| Respond to of 9256

How do we reconcile research reports of 17 in 19 percent growth in PC sales with the doom and gloom which is so pervasive regarding the state of the disk drive industry? Surely part of it is intense pricing pressure on the drive companies combined with a mixshift to lower platter counts desktop drives. I have the impression, though no evidence, that we experienced what will likely be a short, sharp inventory correction and the conditions will soon seem to improve. I would expect expect platter counts for the desktop to remain under pressure until cable modems and video applications become prevalent, but am optimistic that the dramatic reduction in PC prices will stimulate substantial growth in PC units. It defies logic, that on a worldwide basis, demand for PCs would not be highly price elastic. -Z