Maxtor issues profit warning

Price tumble to blame

The hard drive price war has taken its toll on Maxtor, which says it will not meet market expectations. The company, part-owned by Hyunda, blames significant price deterioration this quarter for the profits warning. It now expects to report a loss of between $23 million and $33 million for the quarter ending on the 3rd of July. Maxtor CEO Mike Cannon said the company would take "appropriate steps" to cut back on production and limit its involvement in the worst affected areas of the market. ® See also: Only 18 disk drive makers left Maxtor growth suggests Seagate takeover

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