|
PureBytes Links
Trading Reference Links
|
Robert:
Your analysis seems impecable.
What is channel assembly?
This is not the first time that a compnent manufacturer, Micropolis in this
case, has gone out of business. What seems to happen is that in a year or
two, people need these particular components and will pay for them. I hope
this is an option for you.
Season greetings
Lionel
At 12:16 PM 12/14/97 -0800, Wizard wrote:
>Hi All:
>
>I see that some of you are interested in hard drive manufacturers. This
>is not a healthy sector. Seagate is closing down a plant in Ireland
>they've had since the early days of pcs, Western Digital and Quantum are
>hurting. Micropolis went out of business with no warning Nov. 10th.
>
>With Samsung a major player in the 3.5 HD market, expect to see the
>other guys really hurting by this spring due to the deflation of the
>Korean currency and the price advantage Samsung will have.
>
>The hard drive mfgs. have about killed themselves off with price
>cutting. They thought volume would make up for margin; it doesn't. I
>anticipate that Samsung will be unloading a whole series of components
>at a deflationary price. Short term great for the consumer, e.g. get
>your Samsung 21" monitor for maybe 700-800 dollars, long term bad for
>the industry with fewer companies left. I got stuck with a ton of
>Micropolis equipment.
>
>I've been in the pc business for 15 years and have never seen things so
>messed up. The mfgs have priced themselves and resellers practically out
>of business.
>
>Just a note about Dell: The only reason Dell has made such unexpected
>profits has not been due to sales but component deflation. HP, Compaq
>and IBM are going after them now with channel assembly. They have lost
>their price advantage and are losing big accounts to Compaq already. By
>this summer, the darling of CNBC is going to have less than stellar
>performance. I guess this is why Michael Dell filed to sell 300,000
>shares last week.
>
>Robert
>
>
>
|