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Technology Stocks : Read-Rite

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To: Sam who wrote (3049)	5/4/1998 6:22:00 PM
From: Stitch	of 5058

Sam, << What are the advantages that GMR will give that desktop users will need next year? Won't MR be enough for awhile (a couple of years at least)?>> The key is to lower the number of components to keep the cost down. GMR offers a ten fold areal density bonus over MR. IBM's Almeden Research Center web site has a lot of cool info on MR/GMR. You can find it at almaden.ibm.com <<And won't GMR be expensive relative to MR, since quantities will be much lower?>> IBM has stated in presentations by Storage engineering V.P. (Bob Scranton) that the transition to GMR from MR is trivial from an expense standpoint and yield standpoint. That you need less heads to produce the same number of disk drives, therefore undercutting scale economies isn't a consideration. The whole idea is to be cheapest and "bestest" to support earning the market share to support the operating model. IBM's technology appears to have a better chance then RDRT's. Best, Stitch

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