EMC How high can it go? Message Board

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Technology Stocks : EMC How high can it go?

EMC 29.05

0.0%

Sep 15 5:00 PM EST

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To: Sam Citron who wrote (15279)	9/15/2003 5:08:32 PM
From: Gus	Read Replies (2) of 17183

Desktop drives account for more than 70% of total industry unit shipments. Enterprise drives account for under 15% while mobile drives account for only 15%. Mobile drives represent an incremental opportunity -- significant, but still incremental -- for the US drive makers whereas the Japanese drive makers are almost totally dependent on this market for their revenue opportunities. Hitachi is the exception because they acquired IBM's disk drive unit which was very strong in mobile drives (~45%-50% market share), but only so-so in enterprise and desktop drives. That chronic lack of manufacturing volume, however, is a painful killer. The US drive makers are going to keep on pounding away at that vulnerability because even the mere perception of doing so allows them to keep more capital from entering this industry, destabilizing prices and essentially mucking up the industry's access to the debt/equity markets. I don't think the CE market is going to develop fast enough to provide the manufacturing volume or the profits needed for the Japanese drive makers to stay in business in anything other than a subsidized manner, i.e., with the persistent losses hidden, conglomerate-style.

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