The industry, a notoriously difficult one in which to succeed, is stuck in a rut of cutthroat pricing and grim profit prospects, according to the report, released Thursday by investment firm Credit Suisse First Boston.

"While demand for hard disk drives remains robust, an extremely competitive pricing environment has emerged, particularly in enterprise drives, which has served to eliminate most of the industry's profit pool for (the) calendar second quarter," the investment firm wrote.

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