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January 27, 1987

OVER-SUPPLY IN FLOPPY DISK DRIVE MARKET LEADS TO LOWER PRICES

By CBR Staff Writer

The international floppy disk drive market has moved in the past year into over-supply leading to ever-lower prices, and in the past three months, the price for 1Mb 3.5 drives ordered in volume has fallen 20% to between $58 and $97; Japanese manufacturers – Alps, Canon, Matsushita – who have most of the US market for IBM Personal drives, have production capacity in place representing three to four times current demand, signalling a price war that will leave casualties on the field.

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