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Technology Stocks : Disk Drive Sector Discussion Forum
WDC 215.00+0.5%Jan 14 3:59 PM EST

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To: Tom Simpson who wrote (8314)5/7/2000 1:23:00 AM
From: Mark Oliver  Read Replies (2) of 9256
 
Such a difficult position to be in. Hutch must begin to get frustrated. I'd almost think they would demand profit from their work, or they would close down. I would.

I have a fantasy. Hutch has a near monopoly. They can't make money. Why not give it up, get new jobs and start over?

Without their product, the market would crumble. Disk drives could not be made. DD companies would surely crack and go bankrupt leaving perhaps surviving 2 companies. Fujitsu would become the dominant player. Price of hard drives would go up, and availablility would be halved.

As the HDD industry is smashed into oblivion, so is the PC market and many of the companies built up around storage. New technologies built on cheap storage become dust. There might even be a general market colapse.

The US government responds by ordering Hutch back to work, and maybe even jailing the officers of the company for behaving so badly as to want profit. Certainly, they pass a law violating Hutchinson patents and give the process away as quickly as they can to restore order. But, it's already too late.

Component suppliers throughout begin to feel they should also get profit, or what's the point. Generally, there is chaos and we all wish we had moved to Idaho, or somewhere up near the Russian river. Only those with amazing foresight will have made the move in advance. We will look to them for guidance and help. They will only chuckle and say we told you so, now live with it.

Fortunately, we know the people of Hutchinson have no such balls and we can sleep safely at night. Can't we?

Regards,

Mark
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