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Technology Stocks : Maxtor (MXTR)

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To: PLauritzen who wrote (418)3/30/2000 6:43:00 AM
From: appro  Read Replies (1) of 467
 
Annual report available at:
biz.yahoo.com

Another take on the SEG deal and interesting comments re industry.
news.cnet.com.

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To compensate, storage companies have been scrambling to expand into more profitable businesses than just selling hard drives. Typically, they have gone into selling storage software and special-purpose servers.

The strategy is no surprise. EMC is perhaps the best example of a company that makes a tidy profit by assembling disk drives in a fancy container with technical support and high-powered software.

A megabyte of EMC storage costs $20; a megabyte of Seagate storage costs a penny. "Where do you want to be on that value chain?" asked Monroe.

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