The Yahoo disk drive boards are also useful sources of data and dirt. Here's an example of the former.
Hitachi IBM 1+1=2
HDD Revenue $775M $4,2B $4.975B
Overall Market Share 3.6% 19.5% 23.1%
ENTERPRISE (units) 616,000 4,272,000 4,888,000
Market Share 3.2% 22.5% 25.7%
DESKTOP (units) 0 13,805,000 13,805,000
Market Share 0.0% 9.7% 9.7%
MOBILE (units) 5,099,000 13,010,000 18,109,000
Market Share 17.3% 44.0% 61.3%
Drive Employees 6,000 18,000 24,000
Manf facilities 2 12 14
*Revenue in millions. Units in thousands.
Source: TrendFocus 2002 and Salomon Smith Barney.
.....Hitachi currently has manufacturing facilities in Japan and the Philippines, and IBM in the US (San Jose, CA), Germany, Hungary, Thailand, Singapore and China.
However, integration challenges remain. We believe it will take time as the JV consolidates its manufacturing to realize scale economies. Additionally, OEMS may be reluctant to purchase too many drives from any one vendor.
For example, in 2000 Quantum sold approximately 2.7 million enterprise drives. However, after Maxtor purchased Quantum's disc drive business, the combined companies' enterprise drive sales declined to 1.1 million drives (Maxtor did not have enterprise drives in 2000).
Additionally, we believe pricing power for the industry could improve as the number of potential drive suppliers decreases, creating less competition for OEM business....
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