Stitch,
>> I would conclude that a DD model without heads and disk technology and capacity is not a great deal more then an assembler.
<<
I have seen this thought expressed many times before here. And I know many people view WDC with contempt because "they are nothing but an assembler". But is it really as simple as that ? What about design, reliability, noise, heat, interface, data rate, shock, etc... ? With the introduction of disks into consumer video appliances, these factors will differentiate DD products. Then of course bundling disks with network hardware and software also helps DD companies to get out of just making commodities.
Regarding the accounting issue, I still don't understand how SEG could make a profit from a vertical process where each step is a loser (at least for the specialized public companies). And to add insult to injury, they were leading a price war at the time, to perhaps bankrupt WDC and get it out of the way. I recall that when the December Q report came out, it was impossible for me to separate results of ops from their complex financial dealings. It is even impossible to tell how many shares of VRTS they sell, until months later.
Anyhow, SEG is in the past now. I see you've put your bet on MXTR. Since I see each with a different strength, I have WDC, HDD and MXTR. I think all three will be in the 20's by January.
-Sarmad |
