Tape Price Hikes Looming

December 2004
Storage Magazine;Dec2004, Vol. 3 Issue 10, p10
This article reports on the predicted increase in the price of tape cartridges in the U.S., as of December 2004. Allegedly, tape media manufacturers are expected to increase prices on midrange tape media by approximately 5 percent to 10 percent. Maxell was the first to announce price increases. Since then, Fujifilm, Imation and TDK have reportedly informed their customers that they will follow suit. Such price increases should make their way to costumers, according to Rich Gadomski, Fujifilm vice president of marketing for the Recording Media Division. One of the reasons cited by tape manufacturers for increased media prices is the rising cost of petrochemicals. In a statement by Gadomski, he said that oil used to spike to $28 per barrel, and then fall back down to $20. Meanwhile, according to Kevin Daly, chief executive officer at disk-backup vendor Avamar Technologies, increased research and development costs are cutting into tape media margins. However, in a statement by Gadomski, he stated that such increases would not be dramatic and that the cost advantages of tape will still be present. Gadomski points to research published by the Tape Technology Council that examines the total cost of ownership of tape versus disk.


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